Published: November 8, 2023 at 4:48 pm ET
Arm Holdings PLC reported earnings on Wednesday for the first time since returning to public markets, but its shares fell in the extended session as its December quarter outlook missed the mark at the halfway point.
The chip developer posted a net loss of $110 million, or 11 cents per share, in the fiscal second quarter, while it earned $114 million, or 11 cents per share, in the year-ago quarter. On an adjusted basis, Arm ARM reported earnings per share of 36 cents, compared to the FactSet consensus of 26 cents.
In total…
Arm Holdings PLC reported earnings on Wednesday for the first time since returning to public markets, but its shares fell in the extended session as its December quarter outlook missed the mark at the halfway point.
The chip developer posted a net loss of $110 million, or 11 cents per share, in the fiscal second quarter, while it earned $114 million, or 11 cents per share, in the year-ago quarter. On an adjusted basis, poor
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reported earnings per share of 36 cents, compared to the FactSet consensus of 26 cents.
Total revenue rose to $803 million from $630 million, while analysts had expected $740 million. The company generated $388 million in revenue from licenses and other sources and $418 million from royalties.
Arm’s total quarterly sales are the highest ever, the company said in its letter to shareholders.
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“We have seen strong demand for more powerful CPUs as companies look to take advantage of the increasing demand for them [artificial intelligence]from cloud servers to smartphones to automotive applications,” the company said in its letter.
Licensing revenue fell 5% from a year ago, Arm executives noted in the letter, due to lower sales of smartphone chips.
For the fiscal third quarter, Arm forecasts revenue of $720 million to $800 million and adjusted earnings per share of 21 cents to 28 cents. The FactSet consensus was for revenue of $776 million and adjusted earnings per share of 27 cents.
Shares of Arm’s fell 8% in late trading Wednesday. The company went public in mid-September.
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