:max_bytes(150000):strip_icc()/GettyImages-2155382583-86caff35371f4f1aaf92c931cceebad0.jpg?w=780&resize=780,470&ssl=1 "Arm Stock Slips Despite Strong Earnings as Its Outlook Disappoints")
Key Takeaways
- Arm Holdings reported fiscal second-quarter earnings that topped analysts’ estimates.
- However, the midpoint of its full-year revenue forecast of $3.8 billion to $4.1 billion was lower than analysts projected.
- Shares of Arm lost ground in extended trading Wednesday following the release.
Arm Holdings (ARM) reported fiscal second-quarter earnings that topped analysts’ estimates, but shares fell in extended trading Wednesday as its sales outlook disappointed.
The chip designer saw revenue grow 5% year-over-year to $844 million, above the analyst consensus from Visible Alpha. Net income was $107 million or 10 cents per share, compared to a loss of 110 million or 11 cents per share a year ago, exceeding expectations.
The gains came as Arm’s royalty revenue jumped 23% to $514 million, though its license and other revenue fell 15% to $330 million.
Arm Offers Soft Sales Forecast
Arm’s current-quarter revenue estimate of $920 million to $970 million was roughly in line with the analyst consensus of $942.47 million. However, the midpoint of its full-year forecast of $3.8 billion to $4.1 billion, unchanged from the quarter prior, was lower than analysts projected.
Shares of Arm fell over 4% in extended trading Wednesday following the release.
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