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ARM FY revenue guidance falls shy of estimates after Q4 results top estimates

AuthorYasin Ebrahim
Published 09/05/2024, 06:40 am
ARM
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Investing.com -- ARM delivered Wednesday annual revenue guidance that fell short of estimates following better-than-expected fiscal fourth-quarter results as licensing revenue was boosted by the ongoing wave of enterprise spending on artificial intelligence.  

Arm Holdings ADR (NASDAQ:ARM) fell 7% in afterhours trading following the report.

The chip designer reported fiscal Q4 adjusted earnings of $0.36 per share on revenue of $928 million. That was ahead of Wall Street estimates for EPS of $0.21 on revenue of $780.2M.

License revenue rose 60% to $414M in Q4 year-over-year, driven by "multiple high-value license agreements being signed as companies increase investment in Arm-based technology for AI across all end markets," the company said.

For Q1, the company guided adjusted EPS of $0.32 to $0.36 on revenue of $875M to $925M, compared with estimates for EPS of $0.31 on revenue of $864.4M.

 
For the full-year 2024, the company forecasts adjusted EPS of $1.45 to $1.65, compared with estimates for EPS of $1.53, while revenue was guided between $3.8B and $4.1B, or $3.95B at the midpoint, just shy of estimates for $3.98B.

 

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