Why Everpure Stock Plummeted This Week

Everpure stock fell 14% this week despite beating Wall Street expectations with fiscal Q2 earnings of $0.70 per share (vs. $0.58 expected) and revenue of $1.2 billion (vs. $1.1 billion expected). The company raised full-year guidance significantly, but investors focused on concerns about product gross margins at 66.2%, which the company attributed to strategic pricing to gain market share. Analysts suggest the sell-off may be an overreaction given strong sales growth of 39.4% and earnings growth of 62.8%.