Chipmaker Arm Holdings Reports Better-Than-Expected Q4 Results: Record Royalty Revenue, Strong License Revenue
Portfolio Pulse from Erica Kollmann
Arm Holdings Plc (NASDAQ:ARM) reported Q4 earnings of 36 cents per share, surpassing the 30 cents estimate by 20%, with sales of $928 million, exceeding estimates by 5.99%. The company achieved record quarterly royalty revenue of $514 million, a 37% increase, and license revenue of $414 million, up 60% year-over-year. This growth is attributed to the adoption of Armv9-based chips and high-value license agreements for AI technology. Arm projects Q1 revenue between $875 million and $925 million, and FY 2025 revenue between $3.8 billion and $4.1 billion.
May 08, 2024 | 8:33 pm
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Arm Holdings reported strong Q4 results with earnings and sales surpassing estimates, driven by record royalty and license revenues. The company projects positive outlook for Q1 and FY 2025.
Arm Holdings' better-than-expected Q4 results and optimistic future revenue projections indicate strong business performance and growth potential. However, the after-hours stock price drop suggests a short-term negative market reaction, potentially due to profit-taking or market expectations being exceeded. Long-term, the strong financial performance and growth in key technology areas like AI and Armv9-based chips are likely to support positive stock performance.
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