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Arm Holdings PLC (NASDAQ:ARM)'s shares are set to open nearly 12% lower on the Nasda this Thursday despite topping quarterly profit and sales forecasts and achieving the fourth consecutive quarter of record revenues. First-quarter earnings were better than expected for the Cambridge-based, SoftBank owned microchip maker, while second-quarter guidance also came in ahead of guidance.
Arm Holdings designs energy-efficient microprocessors for electronic devices, but the stock dropped 8% after unchanged fiscal 2025 guidance. Arm's revenue growth rates point to 27% CAGR, but stock valuation at 60x next year's EPS is considered a high premium. Arm's prospects in AI, cloud computing, and smartphones are strong, but challenges in IoT and networking markets make valuation rich and require patience from investors.
Arm stock sank following its first-quarter report despite strong revenue growth. The company's guidance came up short, and it announced that it will stop disclosing chip volumes.
Shares of Arm Holdings plc ARM fell sharply in premarket trading on Thursday following the British chipmaker's release of its quarterly results after the market closed on Wednesday.
Arm Holdings shares fell after earnings failed to maintain its sharp rally this year but J.P. Morgan analysts see reason for optimism.
Arm Holdings (ARM) shares plunged ahead of Thursday's opening bell after the British chip designer's light profit guidance overshadowed quarterly results that came in above expectations.
Rolf Bulk, equity research analyst at New Street Research, explains why Arm is a "difficult company to own."
Arm Holdings plc (NASDAQ:ARM ) Q1 2025 Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Jeff Kvaal - VP of IR Rene Haas - CEO Jason Child - CFO Conference Call Participants Vivek Arya - Bank of America Securities Lee Simpson - Morgan Stanley Matt Ramsay - TD Cowen Mark Lipacis - Evercore Mehdi Hosseini - Susquehanna International Group Vijay Rakesh - Mizuho Charles Shi - Needham & Company David O'Connor - BNP Paribas Andrew Gardiner - Citi Chris Caso - Wolfe Research Operator Good day and thank you for standing by. Welcome to the Arm First Quarter Fiscal Year 2025 Webcast and Conference Call.
Arm Holdings (ARM) shares gave back Wednesday's gains in after-hours trading, dropping even as the chip-design company reported fiscal first-quarter earnings that were higher than expected.
Even as shares fall about 9%, chief financial officer says firm is seeing ‘more investment' in AI than ‘even 90 days ago'