Teradyne, a semiconductor-testing equipment maker, saw its stock plummet 5.73% in the pre-market trading session, following the company's downbeat revenue and earnings guidance for the first quarter due to softening demand.

The company forecasted first-quarter revenue between $660 million and $700 million, significantly lower than analysts' average estimate of $694 million. Teradyne also projected adjusted earnings per share in the range of 58 cents to 68 cents, missing the consensus estimate of 63 cents.

The disappointing guidance comes despite Teradyne reporting better-than-expected fourth-quarter results, indicating a potential slowdown in demand for its products. Investors reacted negatively to the company's cautious outlook, leading to the sharp pre-market decline in its stock price.