Shares of Arm Holdings (ARM) are down 7% after the microchip and semiconductor company reported its first post-initial public offering (IPO) financial results.
While the company’s results exceeded expectations, the stock is down on weaker-than-expected revenue guidance.
For the three months ended Sept. 30, Arm reported earnings per share (EPS) of $0.36 U.S., which was in line with analyst forecasts.
Revenue in the quarter totaled $806 million U.S. versus $744.3 million U.S. that was expected. The company’s revenue was up 28% from a year earlier.
Arm said it sold more than 7.1 billion microchips during the quarter.
Looking ahead, Arm said it was expecting earnings per share of $0.21 U.S. to $0.28 U.S. on sales of between $720 million U.S. and $800 million U.S. in the current fourth quarter.
The guidance was lighter than what Wall Street was looking for, which was $0.27 U.S. per share in earnings on revenue of between $730 million U.S. and $805 million U.S.
Arm went public in an IPO this past September. The company’s stock has since declined 15% to trade at $54.40 U.S. per share.