STMicroelectronics lowered its third-quarter sales forecast, triggering a premarket selloff despite stronger-than-expected second-quarter earnings.
STMicroelectronics (STM) shares plunged nearly 12% in premarket trading after the company issued a weaker-than-expected revenue outlook for the third quarter. The decline overshadowed a second-quarter earnings beat, where results surpassed analyst estimates.
The semiconductor firm had previously guided for higher revenue but revised its forecast downward, citing softer demand in certain segments. However, STM raised its full-year revenue projection for its data center business, signaling strength in that area.
The premarket drop reflects investor concerns over near-term growth, despite the company’s positive performance in data center markets and overall Q2 results.