Chip designer Arm Holdings (NASDAQ:ARM) reported a better-than-expected quarterly profit, but its outlook for the current quarter was largely in line with Wall Street expectations which sent the shares down more than 5% in after-hours trading.

The company reported fiscal third-quarter adjusted earnings per share of 39 cents, compared with Wall Street’s consensus estimate of 34 cents.

Arm Holdings beat estimates for the chip designer's fiscal third quarter but offered in-line guidance. Arm stock fell on the news.