(MENAFN- Baystreet) Nova Gains on Q1 Numbers
Airbnb's Stock Drops 9% On Soft Guidance
NANO-X Slides as Arm Recognized
Uber's Stock Falls 8% As Earnings Miss Target
Reddit's Stock Rises 15% On First Earnings Report Previous Articles Subscribe to Get Small Cap News & Alerts Baystreet Staff - Thursday, May 9, 2024
Chipmaker Arm's Stock Falls 8% On Weak Outlook Shares of British microchip designer Arm Holdings (ARM) are down 8% after the company provided revenue guidance that missed analysts' targets.
The lacklustre outlook overshadowed the fact that Arm reported fiscal fourth-quarter revenue of $928 million U.S., a 47% increase from a year ago.
The sales growth was driven by Arm's licensing unit, which grew 60% to $414 million U.S. during the quarter. The company said demand for artificial intelligence (AI) chips is powering its sales growth.
Arm's royalty revenues grew 37% year-over-year to $514 million U.S. in the quarter due to its recently introduced Armv9-based microchip. The royalty revenue was a record amount.
In terms of profit, Arm earned $0.36 U.S. per share, beating forecasts of $0.31 U.S. a share.
However, despite the strong print, Arm's guidance left analysts and investors underwhelmed.
For fiscal 2025, Arm said it expects revenue of $3.80 billion U.S. to $4.1 billion U.S. Wall Street analysts were expecting revenue of $3.99 billion U.S. for the full year.
For the current quarter, the company forecast revenue of $875 million U.S. to $925 million U.S. Wall Street had been looking for sales of $857.5 million U.S.
Prior to today's (May 9) decline, the stock of Arm had risen 75% since its initial public offering (IPO) last autumn and was trading at $106.07 U.S. per share.
About Us Contact Us Advertise License Our Content Jobs Disclaimer Privacy Policy
Copyright 1998 - 2024 Baystreet Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by QuoteMedia. Earnings by Zacks. Analyst Ratings by Zacks
MENAFN09052024000212011056ID1108194125
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.