Yeti Holdings, maker of “built-for-the-wild” coolers, beat Wall Street expectations in its first earnings report since it became a publicly traded company in October.

Net income for the quarter rose to $17 million, or 21 cents a share, from $11.3 million, or 14 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 24 cents. Sales for the quarter that ended Sept. 29 increased 7 percent to $196.11 million.

Analysts expected Yeti earnings of 21 cents per share on revenue of $196 million, according to Zacks Investment Research.

After the earnings report was issued, shares of Yeti rallied to a new high, then reversed course and turned sharply lower. Shares were at $16.95, down $2.25 or $11.7 percent, in mid-day trading.

“We are pleased with our performance in the third quarter, which resulted in a significant increase in both gross margin and net income,” said Matt Reintjes, Yeti CEO, in a written statement.

Baird analyst Peter Benedict said higher drinkware sales offset an expected decrease in the company’s cooler business. The stock offers an attractive risk-reward as it trades below its peers’ valuations, Benedict wrote in a research report.

Yeti was founded in 2006 by brothers Roy and Ryan Seiders who launched a line of rugged, hard-case coolers targeted at hunters and anglers.

Yeti has since built a loyal fan base among sporting enthusiasts who have embraced the heavily insulated, nearly indestructible coolers, paying from $200 to $1,200 depending on the size.

The company has expanded from its original niche to a larger mainstream audience in recent years with products including drinkware, bags and accessories.

The company raised $288 million in its initial public offering of stock on Oct. 25.