Around $7bn was wiped from the value of Arm Holdings PLC (NASDAQ:ARM) overnight after the US-listed UK chip designer disappointed the Street with below-par revenue guidance.
Despite a strong fourth-quarter performance, where sales surged 47% to $928 million, surpassing the expected $875.6 million, and earnings reached 36 cents per share, the outlook remained underwhelming.
For the first fiscal quarter, Arm anticipates revenue between $875 million and $925 million, surprisingly above the average analyst estimate of $857.5 million, according to Reuters.
However, the full-year projection is set between $3.8 billion and $4.1 billion, with a midpoint of $3.95 billion, just shy of the consensus estimate of $3.99 billion.
The shares fell 7% in a tough session as they closed out at $106.07.