STMicroelectronics (NYSE:STM) lowered its fiscal 2024 sales forecast following a drop in first-quarter revenue and net profit, yet its shares saw a more than 2% increase in premarket trading on Thursday.

The company reported earnings per share (EPS) of $0.54 for the quarter, falling short of the expected $0.63. Revenue for the first quarter decreased by 18% to $3.47 billion, which was below the $3.64 billion anticipated by analysts. Additionally, net profit halved from $1.04 billion to $513 million. Gross profit also declined, dropping to $1.44 billion from $2.11 billion, and the gross margin for the quarter came in at 41.7%.

In light of these results, the semiconductor manufacturer adjusted its full-year financial outlook. It now projects annual revenues to range between $14 billion and $15 billion, down from the previously estimated $15.9 billion to $16.9 billion. The company also expects gross margins to remain in the low 40s percentage range, adjusting from prior expectations of low to mid-40s.