TRT is trading sharply lower as a massive rally following its Q3 earnings report reverses, with investors taking profits amid concerns about compressing margins and broader market headwinds.
- On May 14, the company reported 124% year-over-year revenue growth for its third quarter, driven by strong demand for AI and automotive chip testing, which initially sent the stock soaring from the mid-$10s to over $20.
- However, the same report revealed that gross margin percentage fell to 16% from 27% in the prior-year quarter, raising concerns about profitability that are now contributing to the sell-off.
- The reversal is also compounded by a broader market trend of rising Treasury yields, which is putting pressure on high-volatility small-cap stocks.