ARM Loses Leg After Downbeat Annual Revenue Forecast
It was all looking good for a second or two as ARM Holdings released earnings with top- and bottom-lines beating expectations…
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*ARM HOLDINGS PLC 4Q TOTAL REV. $928M, EST. $880.4M
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*ARM HOLDINGS PLC 4Q ADJ EPS 36C, EST. 30C
So good, so far, then the chip designer said that sales will be $875 million to $925 million in the June quarter (which compares favorably with an average analyst estimate of $868 million).
But then the hammer fell…
However, the company forecasts that for fiscal 2025, which ends next March, revenue will be $3.8 billion to $4.1 billion – while analysts’ estimates were for a total of $4.01 billion.
Three months ago, an upbeat forecast sent its shares soaring and helped turn the company into an AI darling on Wall Street, but ARM shares are trading down 10% after-hours on tonight’s report…
In an interview, CEO Rene Haas said Arm remains “very confident in the long-term growth.”
“A lot of the strategies we put in place a couple of years ago are all coming together,” he said.
Maybe so, but just not fast enough for investors.
Tyler Durden
Wed, 05/08/2024 – 16:22