Arm Holdings Stock Falls, Weighed Down by Earnings Guidance

<p>Annabelle Chih/Bloomberg via Getty Images</p><div class=

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.

The shares were recently down more than 12% after gaining more than 8% in the regular session. The shares have risen for much of 2024, climbing more than 90% this year.

The chip-design company projected adjusted earnings per share between 23 cents and 27 cents for the current quarter, leaving unchanged its full-year revenue and adjusted EPS guidance. The quarterly outlook was below some reported analyst consensus estimates.

In its fiscal first quarter ended June 30, Arm posted record revenue of $939 million, up 39% year-over-year and above the analyst consensus of $912 million, per Visible Alpha. Diluted earnings per share were 21 cents, compared to 10 cents in the year-ago quarter and expectations of 16 cents.

The growth was driven by licensing and other revenue, which jumped 72% to $472 million. Royalty revenue increased 17% to $67 million, which the company attributed to penetration of its Armv9-based chips.

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel