Arm Shares Slip After Third Quarter Revenue Outlook Misses Estimates

Luzi Ann Santos wrote a column · Nov 7, 2024 05:05

$Arm Holdings (ARM.US)$ shares tumbled 3.9% in extended trading Wednesday after the chip designer gave a fiscal third quarter outlook that missed Bloomberg consensus.

The company forecast third quarter revenue of between $920 million to $970 million. Analysts, on average, expect $950.9 million for that period, according to estimates compiled by Bloomberg. Adjusted earnings could reach 32 cents to 36 cents, in line with estimates.

The miss in revenue outlook overshadowed a profit beat for the three months ended Sept. 30. The company reported fiscal second quarter adjusted earnings of 30 cents per share, surpassing expectations by 16%, according to Bloomberg data. Revenue for that quarter came in at $844 million, 4.1% above consensus.

"AI everywhere from the cloud to the edge is creating demand for more energy-efficient compute," CEO Rene Haas and CFO Jason Child said in their shareholder letter.

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