Technology
Thursday, February 8th, 2024 3:08 pm EDT
Key Points
- Arm’s stock experienced a significant surge of over 30%, reaching up to 41% in after-hours trading, following the announcement of better-than-expected earnings and a strong profit forecast for the ongoing quarter.
- Arm’s chip design technology, widely used in smartphones and PCs, contributed to the company’s higher-than-expected earnings per share and revenue for the quarter ending in December.
- The company reported adjusted earnings per share of 29 cents, exceeding analysts’ expectations of 25 cents, along with revenue of $824 million, surpassing the anticipated $761 million. Additionally, Arm forecasted earnings per share for the current quarter to range between 28 cents and 32 cents, with sales projected at $850 million to $900 million, contrasting analysts’ forecasts of 21 cents per share on sales of $780 million.
Arm, a leading chip designer whose technology is pervasive in smartphones and PCs, experienced a significant surge in its stock value, soaring over 30% on Thursday morning following the announcement of robust earnings and a bullish profit outlook for the ongoing quarter. The surge continued into after-hours trading on Wednesday, with shares spiking as much as 41%. Arm’s financial report for the quarter ending in December surpassed expectations, with adjusted earnings per share reaching 29 cents compared to the anticipated 25 cents, as reported by LSEG (formerly Refinitiv). Additionally, the company’s revenue for the quarter amounted to $824 million, significantly surpassing the expected $761 million. Projections for the current quarter are equally promising, with Arm forecasting earnings per share to range between 28 cents and 32 cents, alongside sales estimated at $850 million to $900 million. In contrast, analysts’ forecasts for the same period anticipate earnings of 21 cents per share on sales of $780 million. Founded in 1990 and subsequently acquired by Softbank in 2016 for $32 billion, Arm made its public debut in September, initially offering shares at $51 each. As of Thursday morning, the stock was trading just below $100 per share. Softbank, retaining approximately 90% of Arm’s outstanding stock, still holds around 930 million shares, yielding a significant gain of approximately $6.8 billion in early trading on Thursday.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/08/arm-shares-soar-after-reporting-strong-earnings-and-forecast.html
