ARM (NASDAQ:ARM) Issues Q3 Earnings Guidance

ARM (NASDAQ:ARM) issued an update on its third quarter earnings guidance on Wednesday morning. The company provided EPS guidance of $0.32-0.36 for the period, compared to the consensus EPS estimate of $0.33. The company issued revenue guidance of $920-970 million, compared to the consensus revenue estimate of $939.31 million. ARM also updated its FY 2025 guidance to 1.450-1.650 EPS.

ARM Stock Down 2.1 %

Shares of NASDAQ:ARM traded down $3.17 during trading on Friday, hitting $147.48. 6,391,084 shares of the company were exchanged, compared to its average volume of 10,921,943. ARM has a 1-year low of $49.82 and a 1-year high of $188.75. The company has a market capitalization of $154.53 billion, a P/E ratio of 377.73, a price-to-earnings-growth ratio of 6.27 and a beta of 5.40. The business’s 50 day moving average is $142.03 and its 200-day moving average is $137.63.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. ARM had a return on equity of 18.97% and a net margin of 12.12%. The business had revenue of $844.00 million during the quarter, compared to analysts’ expectations of $810.03 million. During the same quarter in the prior year, the firm earned $0.36 EPS. The business’s revenue for the quarter was up 4.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that ARM will post 0.86 earnings per share for the current year.

Wall Street Analysts Forecast Growth

ARM has been the topic of a number of research reports. TD Cowen boosted their target price on shares of ARM from $150.00 to $165.00 and gave the stock a “buy” rating in a report on Thursday. Daiwa America upgraded ARM from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 8th. Needham & Company LLC reaffirmed a “hold” rating on shares of ARM in a report on Thursday. Citigroup upped their price target on ARM from $150.00 to $170.00 and gave the company a “buy” rating in a research report on Thursday, August 1st. Finally, Raymond James initiated coverage on ARM in a research note on Friday, September 13th. They issued an “outperform” rating and a $160.00 price objective on the stock. Two investment analysts have rated the stock with a sell rating, six have given a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $145.57.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.