Arm Holdings: Here’s What Investors Need to Know Before Earnings

Arm Holdings (NASDAQ:ARMH) will report earnings before markets open on Wednesday, July 24th. ARM Holdings plc develops processors, data engines, peripherals, software, and tools. The Group’s solutions are used in a variety of applications, including in the automotive, consumer entertainment, digital imaging, mass storage, networking, security, and wireless industries.

Here is your Cheat Sheet to Arm Holdings Earnings:

Earnings Expectations: Analysts expect earnings of $0.21 per share on revenues of $255.48 million. Currently, the company’s P/E ratio stands at 69.12.

Analyst Trends:

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 $0.23 to a profit $0.24. For the current year, the average estimate is a profit of $0.95, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Arm Holdings has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 555 478 629 789 914
Diluted EPS ($) 0.16 0.15 0.30 0.38 0.54

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 210.42 231.09 257.77 259.61
Diluted EPS ($) 0.13 0.14 0.14 0.17

Past Performance:
Arm Holdings has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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

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