NN Shares Drop 7.4% as CPI Rises and Oil Prices Climb
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 54 minutes ago
0mins
Should l Buy NNBR?
Source: Yahoo Finance
- CPI and Oil Price Impact: The April Consumer Price Index (CPI) rose to 3.8%, and Brent crude oil prices climbed to approximately $107, resulting in a 7.4% drop in NN's stock during the afternoon session, indicating heightened cost pressures faced by manufacturers.
- Rising Manufacturing Costs: The ISM Prices Index reached 84.6% in April, a four-year high, with input costs increasing by 25.6 percentage points over three months, and 69% of manufacturer comments expressed negative sentiment about the future, highlighting concerns over passing costs to consumers.
- Capital Expenditure Pressure: With Treasury yields rising to a high of 4.43%, manufacturers face increased borrowing costs when financing new equipment and factory expansions, which could suppress future capital expenditures and further compress gross margins.
- Market Volatility Analysis: NN's shares have experienced 54 moves greater than 5% over the past year; while today's drop is seen as a significant market reaction, it does not fundamentally alter perceptions of the company's business, reflecting cautious investor sentiment regarding future growth.
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Analyst Views on NNBR
Wall Street analysts forecast NNBR stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 2.330
Low
4.00
Averages
5.33
High
6.00
Current: 2.330
Low
4.00
Averages
5.33
High
6.00
About NNBR
NN, Inc. is a diversified industrial company. The Company combines advanced engineering and production capabilities with materials science expertise to design and manufacture high-precision components and assemblies. The Company operates through two segments: Mobile Solutions and Power Solutions. Mobile Solutions segment manufactures components for use in power steering, braking, transmissions, and gasoline fuel system applications, along with components utilized in heating, ventilation and air conditioning and diesel injection and diesel emissions treatment applications. The segment’s technical capabilities can be utilized in various applications, including for use in battery electric, hybrid electric, and internal combustion engine vehicles. Power Solutions segment manufactures a range of products, including electrical contacts, connectors, contact assemblies, and precision stampings for the electrical end market and high precision products for the aerospace and defense end market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NN Shares Drop 7.4% as CPI Rises and Oil Prices Climb
- CPI and Oil Price Impact: The April Consumer Price Index (CPI) rose to 3.8%, and Brent crude oil prices climbed to approximately $107, resulting in a 7.4% drop in NN's stock during the afternoon session, indicating heightened cost pressures faced by manufacturers.
- Rising Manufacturing Costs: The ISM Prices Index reached 84.6% in April, a four-year high, with input costs increasing by 25.6 percentage points over three months, and 69% of manufacturer comments expressed negative sentiment about the future, highlighting concerns over passing costs to consumers.
- Capital Expenditure Pressure: With Treasury yields rising to a high of 4.43%, manufacturers face increased borrowing costs when financing new equipment and factory expansions, which could suppress future capital expenditures and further compress gross margins.
- Market Volatility Analysis: NN's shares have experienced 54 moves greater than 5% over the past year; while today's drop is seen as a significant market reaction, it does not fundamentally alter perceptions of the company's business, reflecting cautious investor sentiment regarding future growth.
See More
NNBR Q1 Earnings Exceed Expectations
- Earnings Beat: NNBR reported a Q1 non-GAAP EPS of $0.02, surpassing expectations by $0.07, indicating strong profitability growth that boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $118.5 million, a 12.1% year-over-year increase, exceeding market expectations by $11.91 million, demonstrating NNBR's sustained competitive strength in the market.
- Substantial EBITDA Increase: Adjusted EBITDA reached $14.1 million, up $3.5 million or 33.0% year-over-year, reflecting significant improvements in operational efficiency and further solidifying the company's financial health.
- Optimistic Future Outlook: NNBR raised its 2026 new business outlook to a range of $80–90 million, indicating strong confidence in future growth, which may attract more investor interest.
See More
NN Inc. Projects FY Free Cash Flow Between USD 450 Million and USD 470 Million
- Financial Outlook: The forecast for free cash flow is projected to be between USD 450 million and USD 470 million.
- Market Expectations: This financial outlook indicates a positive trend in cash generation for the company, potentially influencing investor confidence.
See More
NN Inc. Secures Over $10 Million Tax Refund
- Tax Refund Impact: NN Inc. announced that its CARES Act refund exceeding $10 million has been processed, which will effectively offset the $10 million borrowed in Q1 2026, thereby enhancing the company's cash flow and future growth capacity.
- Growth Strategy Advancement: The company is implementing a deliberate growth program focused on high-value auto parts and electric grid components, aiming to improve profit margins and reposition its market exposure for higher growth potential.
- Market Positioning Optimization: NN plans to elevate the electric grid and data center parts market to its top market, indicating a strategic focus on high-growth sectors while also emphasizing its commitment to critical markets like defense and medical equipment.
- Financial Outlook Update: NN will update its financial outlook on May 6, 2026, expected to further disclose Q1 net sales and new business wins, reflecting the company's positive performance in the market and future growth potential.
See More
NN, Inc. to Release Q1 2026 Financial Results
- Earnings Release Schedule: NN, Inc. will announce its Q1 2026 financial results after market close on May 6, 2026, covering data up to March 31, which is expected to provide investors with key performance metrics and market trend analyses.
- Conference Call Timing: The related conference call is scheduled for May 7, 2026, at 9:00 a.m. E.T., with participants required to register 5 to 10 minutes prior to ensure smooth participation in discussions regarding the company's performance and future outlook.
- Webcast Participation: The conference call will be webcast in its entirety through NN's Investor Relations website, allowing shareholders and media representatives to register and participate, enhancing transparency and fostering interaction with investors.
- Replay Availability: For those unable to listen live, a replay will be available shortly after the call on NN's website until May 7, 2027, ensuring all stakeholders can access important information.
See More
NN, Inc. to Attend Data Center World 2026
- Executive Attendance: NN's CEO Harold Bevis, COO Tim French, CCO Tim Erro, and CTO Rob Esch will attend Data Center World 2026 to establish and deepen commercial and technical relationships with industry leaders, thereby enhancing the company's influence in the data center infrastructure sector.
- Market Growth Potential: The Electric Grid and Data Center market has emerged as NN's second largest market, and with multiple new awards from leading global AI infrastructure and data center computing equipment providers, the company is poised for significant growth, further solidifying its market position.
- High Technical Alignment: NN's decades of experience in liquid management and cooling align well with the technical and performance requirements of the AI and cloud computing industries, enabling the company to meet the increasing market demand and drive future business growth.
- Industry Networking Opportunity: Data Center World brings together thousands of operators, technologists, and innovators to tackle emerging challenges in cloud infrastructure and cooling technologies, providing NN with an excellent platform to showcase its technical capabilities and industry leadership.
See More
NN Shares Drop 7.4% as CPI Rises and Oil Prices Climb
- CPI and Oil Price Impact: The April Consumer Price Index (CPI) rose to 3.8%, and Brent crude oil prices climbed to approximately $107, resulting in a 7.4% drop in NN's stock during the afternoon session, indicating heightened cost pressures faced by manufacturers.
- Rising Manufacturing Costs: The ISM Prices Index reached 84.6% in April, a four-year high, with input costs increasing by 25.6 percentage points over three months, and 69% of manufacturer comments expressed negative sentiment about the future, highlighting concerns over passing costs to consumers.
- Capital Expenditure Pressure: With Treasury yields rising to a high of 4.43%, manufacturers face increased borrowing costs when financing new equipment and factory expansions, which could suppress future capital expenditures and further compress gross margins.
- Market Volatility Analysis: NN's shares have experienced 54 moves greater than 5% over the past year; while today's drop is seen as a significant market reaction, it does not fundamentally alter perceptions of the company's business, reflecting cautious investor sentiment regarding future growth.
See More
NNBR Q1 Earnings Exceed Expectations
- Earnings Beat: NNBR reported a Q1 non-GAAP EPS of $0.02, surpassing expectations by $0.07, indicating strong profitability growth that boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $118.5 million, a 12.1% year-over-year increase, exceeding market expectations by $11.91 million, demonstrating NNBR's sustained competitive strength in the market.
- Substantial EBITDA Increase: Adjusted EBITDA reached $14.1 million, up $3.5 million or 33.0% year-over-year, reflecting significant improvements in operational efficiency and further solidifying the company's financial health.
- Optimistic Future Outlook: NNBR raised its 2026 new business outlook to a range of $80–90 million, indicating strong confidence in future growth, which may attract more investor interest.
See More
NN Inc. Projects FY Free Cash Flow Between USD 450 Million and USD 470 Million
- Financial Outlook: The forecast for free cash flow is projected to be between USD 450 million and USD 470 million.
- Market Expectations: This financial outlook indicates a positive trend in cash generation for the company, potentially influencing investor confidence.
See More
NN Inc. Secures Over $10 Million Tax Refund
- Tax Refund Impact: NN Inc. announced that its CARES Act refund exceeding $10 million has been processed, which will effectively offset the $10 million borrowed in Q1 2026, thereby enhancing the company's cash flow and future growth capacity.
- Growth Strategy Advancement: The company is implementing a deliberate growth program focused on high-value auto parts and electric grid components, aiming to improve profit margins and reposition its market exposure for higher growth potential.
- Market Positioning Optimization: NN plans to elevate the electric grid and data center parts market to its top market, indicating a strategic focus on high-growth sectors while also emphasizing its commitment to critical markets like defense and medical equipment.
- Financial Outlook Update: NN will update its financial outlook on May 6, 2026, expected to further disclose Q1 net sales and new business wins, reflecting the company's positive performance in the market and future growth potential.
See More
NN, Inc. to Release Q1 2026 Financial Results
- Earnings Release Schedule: NN, Inc. will announce its Q1 2026 financial results after market close on May 6, 2026, covering data up to March 31, which is expected to provide investors with key performance metrics and market trend analyses.
- Conference Call Timing: The related conference call is scheduled for May 7, 2026, at 9:00 a.m. E.T., with participants required to register 5 to 10 minutes prior to ensure smooth participation in discussions regarding the company's performance and future outlook.
- Webcast Participation: The conference call will be webcast in its entirety through NN's Investor Relations website, allowing shareholders and media representatives to register and participate, enhancing transparency and fostering interaction with investors.
- Replay Availability: For those unable to listen live, a replay will be available shortly after the call on NN's website until May 7, 2027, ensuring all stakeholders can access important information.
See More
NN, Inc. to Attend Data Center World 2026
- Executive Attendance: NN's CEO Harold Bevis, COO Tim French, CCO Tim Erro, and CTO Rob Esch will attend Data Center World 2026 to establish and deepen commercial and technical relationships with industry leaders, thereby enhancing the company's influence in the data center infrastructure sector.
- Market Growth Potential: The Electric Grid and Data Center market has emerged as NN's second largest market, and with multiple new awards from leading global AI infrastructure and data center computing equipment providers, the company is poised for significant growth, further solidifying its market position.
- High Technical Alignment: NN's decades of experience in liquid management and cooling align well with the technical and performance requirements of the AI and cloud computing industries, enabling the company to meet the increasing market demand and drive future business growth.
- Industry Networking Opportunity: Data Center World brings together thousands of operators, technologists, and innovators to tackle emerging challenges in cloud infrastructure and cooling technologies, providing NN with an excellent platform to showcase its technical capabilities and industry leadership.
See More
