Arm Holdings Stock Tumbles on Q1 Results and Weak Q2 Guidance

Arm Holdings Stock Falls After Q1 Results, Weak Q2 Guidance: Details - ARM Holdings (NASDAQ:ARM)

Quarterly sales clock in at $939 million which beat the analyst consensus estimate of $902.691 million by 4.02%. Arm Holdings Plc ARM shares are trading lower after the company reported its first-quarter financial results Wednesday. Here's a look at the details from the report. The Details: Arm reported quarterly earnings of 40 cents per share, which beat the analyst consensus estimate of 34 cents by 17.65%. Quarterly sales clocked in at $939 million, which beat the analyst consensus estimate of $902.691 million by 4.02% with record license revenue and strong growth in royalty revenue. The company reported license and other revenue of $472 million, up 72% year-over-year, due to the signing of multiple high-value license agreements. Royalty revenue came in at $467 million, up 17% year-over-year, driven by the rapidly increasing penetration of Armv9-based chips and strong growth in premium smartphones. Arm said it saw strong non-GAAP operating income growth to $448 million resulting in a 47.7% non-GAAP operating margin. Read Also: What's Going On With SoFi Stock After Earnings? "AI demand and rising CSS adoption across major market segments drove record revenue," said Rene Haas, CEO of Arm Holdings. "As the energy needs of AI continue to escalate, so does the demand for the high-performance, power-efficient Arm compute platform." Outlook: Arm Holdings sees second-quarter revenue in a range of $780 million to $830 million, versus the $804.08 million estimate, and earnings of between 23 cents and 27 cents, versus the 27-cent estimate. ARM Price Action: According to Benzinga Pro, Arm Holdings shares are down 9.41% after-hours at $130.60 after gaining more than 8% in regular trading Wednesday. Read Next: Lattice Semiconductor Stock Falls On Worse-Than-Expected Q2 Results Image: Courtesy of Arm Holdings Plc Market News and Data brought to you by Benzinga APIs

What's Going On With Arm Holdings Stock Wednesday? - ARM Holdings (NASDAQ:ARM)

Analysts are looking for earnings of 34 cents per share and revenue of $902.691 million. Arm Holdings Plc ARM shares are trading higher Wednesday in sympathy with Advanced Micro Devices, Inc. AMD, which jumped after reporting strong financial results for the second quarter. What Happened With AMD: AMD reported second-quarter revenue of $5.835 billion, beating analyst estimates of $5.724 billion. The chipmaker reported adjusted earnings of 69 cents per share, beating analyst estimates of 68 cents per share. "We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue. Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors," said Lisa Su, chair and CEO of AMD. "The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business." AMD said it expects third-quarter revenue to be between $6.4 billion and $7 billion versus estimates of $6.61 billion. The company anticipates third-quarter gross margin of approximately 53.5%. AMD also said on its conference call that it expects GPU revenue to exceed $4.5 billion this year, up from its prior forecast of approximately $4 billion. AMD shares were up approximately 9% at the time of writing. See Also: Markets On Edge Ahead Of Fed Announcement: Oil Spikes After Hamas Leader's Death, BoJ Hikes Rates, Eurozone Inflation Rises, US Jobs Disappoint Why It Matters: Several semiconductor names are moving higher alongside AMD as investors and analysts become more optimistic about chip earnings. Arm is scheduled to report financial results for its fiscal first quarter after the market close on Wednesday. Analysts are looking for earnings of 34 cents per share and revenue of $902.691 million, according to estimates from Benzinga Pro. Last quarter, Arm reported earnings of 36 cents per share and revenue of $928 million in its third quarter as a public company. "This growth was driven by record royalty revenue as Armv9 adoption continues, especially in smartphones, server, and automotive markets. Revenue from licensing was also very strong, driven by multiple high-value agreements and the increased demand for Arm's power-efficient technology for AI from data centers to edge computing," Arm CEO Rene Haas said at the time. It's worth noting that HSBC analyst Frank Lee on Monday downgraded Arm from a Hold rating to a Reduce rating, just days ahead of earnings. What Else: Some chip stocks may also be getting a lift after Reuters reported that the Biden administration plans to propose a new rule next month that would expand the United States' ability to stop foreign exports of semiconductor manufacturing equipment to Chinese chipmakers. The report indicates that shipments from allies that export key chipmaking equipment, including Japan, the Netherlands and South Korea, will be excluded from the new rule, limiting its impact, according to sources familiar with the matter. ARM Price Action: Arm shares were up 7.21% at $142.55 at the time of writing, according to Benzinga Pro. Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Arm Holdings plc Reports Results for the First Quarter of the Financial Year Ended 2025

Arm Holdings plc (NASDAQ: ARM), the company that is building the future of computing, has today published a letter to its shareholders containing the company's results for its fiscal first quarter and three months ended June 30, 2024. The letter is available on its investor relations website (https://investors.arm.com/financials/quarterly-annual-results). The shareholder letter will also be furnished to the Securities and Exchange Commission (SEC) on a Form 6-K and will be available on the SEC website at http://www.sec.gov. Arm will host an audio webcast to discuss its results at 14:00 PT / 17:00 ET / 22:00 BST today, July 31. The live webcast will be available at https://edge.media-server.com/mmc/p/8vztamtt/ and a replay will be at https://investors.arm.com/financials/quarterly-annual-results. About Arm: Arm technology is building the future of computing. Our energy-efficient processor designs and software platforms have enabled advanced computing in more than 290 billion chips and our technologies securely power products from the sensor to the smartphone and the supercomputer. Together with 1,000+ technology partners, we are enabling artificial intelligence to work everywhere, and in cybersecurity, we are delivering the foundation for trust in the digital world - from chip to cloud. The future is being built on Arm. All information is provided "as is" and without warranty or representation. This document may be shared freely, attributed and unmodified. Arm is a registered trademark of Arm Limited (or its subsidiaries or affiliates). All brands or product names are the property of their respective holders. © 1995-2024 Arm Limited.