Copyright Investor's Business Daily
Semiconductor design firm Arm Holdings (ARM) late Wednesday beat Wall Street's targets for its fiscal second quarter and guided higher than views for the current period. Arm stock rose on the news. The Cambridge, U.K.-based company earned an adjusted 39 cents a share on sales of $1.14 billion in the quarter ended Sept. 30. Analysts polled by FactSet had expected Arm earnings of 33 cents a share on sales of $1.06 billion. In the same quarter last year, Arm earned 30 cents a share on sales of $844 million. For the current quarter, Arm expects to earn an adjusted 41 cents a share on sales of $1.23 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 35 cents a share on sales of $1.11 billion. In the year-ago period, Arm earned 39 cents a share on sales of $983 million. Arm has two sources of revenue: licensing and royalties. Licensing involves giving customers access to its portfolio of intellectual property for developing Arm-based processors. Royalties enable Arm to get a payment for each chip sold. In after-hours trading on the stock market today, Arm stock rose more than 3% to 166.20. During the regular session Wednesday, Arm stock dipped 0.3% to close at 160.19. Earnings report details to follow. Arm stock is on the IBD Tech Leaders list. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE: Supermicro Stock Retreats On September-Quarter Miss Qnity Completes Spinoff From DuPont, Gets Positive Initial Response Discover Profitable Trades Each Day With MarketDiem. See How. Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
