ARM Earnings: Here’s Why Investors are Happy Now

ARM Holdings plc (NASDAQ:ARMH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 9.87%.

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ARM Holdings plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 68.75% to $0.05 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 19.75% to $170.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ARM Holdings plc reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.21. It missed the average revenue estimate of $251.1 million.

Quoting Management: “We are enabling additional interconnect options to support the rapid adoption of ARM technology. These new options will help ARM and Arteris customers build new interconnect architectures,” said Noel Hurley, vice president of Marketing and Strategy, Processor Division, ARM. “This is another step forward for the ARM community and for Arteris, which was a participant in the ARM AMBA® 4 ACE™ specification process.”

Key Stats (on next page)…

Revenue decreased 35.12% from $262.5 million in the previous quarter. EPS decreased 75% from $0.20 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.2 to a profit $0.21. For the current year, the average estimate is a profit of $0.88, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)