Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

Arm Q2 earnings beat estimates, stock dips 3%

Chipmaker Arm (NASDAQ:ARM) reported second-quarter earnings that surpassed analyst expectations, but its stock fell 3% in after-hours trading. The chip designer posted adjusted earnings per share of $0.30, beating the consensus estimate of $0.26, while revenue came in at $844 million, exceeding the expected $744.31 million.

The company’s revenue increased 5% YoY, driven by record royalty revenue and strong license revenue. Royalty revenue surged 23% YoY to $514 million, primarily due to the continued adoption of Armv9 and smartphone market recovery.

License and other revenue declined 15% YoY to $330 million, which the company attributed to normal fluctuations in timing and size of high-value license agreements.

Arm’s CEO Rene Haas commented on the results, stating, “Demand for our high-performance Armv9 and CSS compute platforms continues to exceed expectations, and to accelerate our licensing and royalty revenue growth. AI everywhere is generating new opportunities for the Arm compute platform from the cloud to the edge.”

For the third quarter, Arm Holdings provided guidance of $0.32-$0.36 EPS and revenue between $920-970 million. The midpoint of this guidance aligns closely with analyst expectations of $0.34 EPS and $945 million in revenue.

The company’s non-GAAP gross margin for Q2 stood at 97.2%, while its non-GAAP operating margin decreased to 38.6% from 47.6% in the prior year’s period, reflecting increased investment in engineering.

Arm’s annualized contract value (ACV) grew 13% YoY to $1,253 million, and remaining performance obligations (RPO) increased 10% quarter-over-quarter to $2,385 million.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com