Philip Morris International reported fourth-quarter results on Friday that missed revenue expectations. After a strong rise in the company’s stock price, some investors decided to take profits.

The company’s shares fell 1.3% to $179.59 in premarket trading. This drop came even as the broader market was recovering from a recent technology sector selloff, with futures pointing to a 0.6% gain at the open.

The New York-based company, which makes traditional cigarettes and Zyn nicotine pouches, reported adjusted earnings of $1.70 per share and revenue of $10.36 billion, up 6.8% from a year ago. Earnings matched analyst expectations from FactSet, but revenue was slightly below the $10.38 billion forecast.

The market response shows that investors were expecting even better results because of the stock’s recent gains. Shares had risen 13% this year and 17% in the past month, so there was little room for disappointment.

For the current fiscal year, management expects earnings of $8.38 to $8.53 per share and revenue growth between 5% and 7%. The midpoint of this outlook is higher than Wall Street’s $8.34 estimate, showing confidence in the company’s shift to lower-risk products.

These mixed results highlight the challenges tobacco companies face with regulations and changing consumer preferences, even as new nicotine products become more popular.