Arm

Arm Will Capture More Than 50% Share of Personal Computer Market in Five Years, CEO Says

Arm Holdings is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The semiconductor and software design company on Wednesday posted a fiscal fourth-quarter net profit of $224 million, or 21 cents a share, with revenue jumping 47%, to $928 million. Analysts polled by FactSet had forecast sales of $865.9 million. Arm Holdings said chips reported as shipped declined to 7 billion. For the first quarter, revenue is expected to be $875 million to $925 million, exceeding analysts expectations of $866.4 million. It expects fiscal-year revenue of $3.8 billion to $4.1 billion, in line with analysts views. Shares are recently down 2%. Dow Jones & Co. owns Factiva.

We adjust our 12-month target to $120 from $140, on a lower revised peer-premium P/E of 64.8x our CY 25 EPS estimate, warranted given our view of growth prospects. We adjust our FY 25 (Mar.) EPS estimate to $1.60 from $1.76 and FY 26’s to $1.92 from $2.00. ARM posts Mar-Q EPS of $0.36, beating the $0.31 consensus. Revenue rose 47%, well ahead of expectations, led by higher royalty (+37%) and licensing sales (+60%). Jun-Q revenue/EPS guide exceeded consensus views, but full-year FY 25 was more tempered (still implies +20% Y/Y growth). The shift towards v9-architecture from v8 remains an opportunity (20% of royalties), which is supporting higher revenue within smartphones and share gain opportunities in automotive/hyperscalers. Although valuation remains a concern, the growth trajectory is extremely attractive (we see +20% annually through FY 27) given cloud share gain from next-gen AI GPUs and CPUs expected to enter the market,

Arm Holdings (ARM) reported fiscal Q4 non-GAAP earnings late Wednesday of $0.36 per diluted share, up from $0.02 a year earlier. Analysts surveyed by Capital IQ expected $0.30. Revenue for the quarter ended March 31 was $928 million, up from $633 million a year earlier. Analysts surveyed by Capital IQ expected $878.2 million. The company said it expects fiscal Q1 non-GAAP EPS of $0.32 to $0.36 on revenue of $875 million to $925 million. Analysts surveyed by Capital IQ expect non-GAAP EPS of $0.31 and revenue of $864.4 million. Arm expects fiscal year 2025 non-GAAP EPS of $1.45 to $1.65 on revenue of $3.80 billion to $4.10 billion. Analysts surveyed by Capital IQ expect non-GAAP EPS of $1.53 and revenue of $3.98 billion. The shares of the company were down 8% in after-hours trading.

ARM Holdings Plc (NASDAQ:ARM) Q4 2024 Earnings Call Transcript May 8, 2024 5:00 PM ET Company Participants Ian Thornton – VP, IR Rene Haas – CEO Jason Child – CFO Conference Call Participants Ross Seymore – Deutsche Bank Vivek Arya – Bank of America Securities Matt Ramsay – TD Cowen Mehdi Hosseini – Susquehanna International Group Charles Shi – Needham & Company Toshiya Hari – Goldman Sachs Ananda Baruah – Loop Capital Gary Mobley – Wells Fargo Lee Simpson – Morgan Stanley Timm Schulze-Melander – Redburn Atlantic Harlan Sur – JPMorgan Operator Good day, and thank you for standing by. Welcome to the ARM Fourth Quarter Fiscal Year Ending 2024 Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand

Goldman Sachs analyst Toshiya Hari maintains ARM Holdings (NASDAQ:ARM) with a Buy and raises the price target from $95 to $108.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target to $140 from $90, on a peer-premium P/E of 72.7x our CY 25 EPS estimate, warranted given our view of growth prospects. We up our above-consensus FY 25 (Mar.) EPS estimate to $1.76 from $1.60 and FY 26’s to $2.00 from $1.87. Ahead of Mar-Q results expected on May 8, we expect ARM to exceed expectations for both EPS ($0.30) and revenue ($869M), as the company has tailwinds tied to both its mobility and data center end markets, supporting licensing/royalty upside. On the mobility front, we think adoption for ARM’s v9-based architecture has a long runway, which has 2x the royalty rate of its predecessor (only 15% of royalty revenue). With regards to data centers, ARM continues to hold a small share

Mizuho analyst Vijay Rakesh maintains ARM Holdings (NASDAQ:ARM) with a Buy and raises the price target from $100 to $160.

ARM Holdings (NASDAQ:ARM) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/26/2024 22.89% Rosenblatt $140 → $180 Maintains Buy 02/16/2024 -11.25% Daiwa Capital $63 → $130 Downgrades Buy → Neutral 02/09/2024 -35.14% Goldman Sachs $65 → $95 Maintains Buy 02/08/2024 -28.32% Barclays $65 → $105 Maintains Overweight 02/08/2024 -31.73% Mizuho $85 → $100 Maintains Buy 02/08/2024 -41.97% Susquehanna $48 → $85 Maintains Neutral 02/08/2024 -31.73% JP Morgan $70 → $100 Maintains Overweight 02/08/2024 -18.07% Keybanc $75 → $120 Maintains Overweight 01/16/2024 -48.8% Keybanc $65 → $75 Maintains Overweight 01/05/2024 -41.97% Mizuho $75 → $85 Maintains Buy 12/26/2023 -24.9% Rosenblatt $85 → $110 Maintains Buy 12/18/2023 -52.21% Deutsche Bank $60 → $70 Downgrades Buy → Hold 11/20/2023 -52.21% Wells Fargo → $70 Initiates Coverage On → Overweight 11/10/2023 -62.45% Morgan Stanley → $55 Initiates Coverage On → Equal-Weight 10/18/2023 -55.62% Keybanc → $65

Rosenblatt analyst Hans Mosesmann maintains ARM Holdings (NASDAQ:ARM) with a Buy and raises the price target from $140 to $180.

ARM Holdings (NASDAQ:ARM) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 -3.31% Daiwa Capital $63 → $130 Downgrades Buy → Neutral 02/09/2024 -29.34% Goldman Sachs $65 → $95 Maintains Buy 02/08/2024 -21.9% Barclays $65 → $105 Maintains Overweight 02/08/2024 -25.62% Mizuho $85 → $100 Maintains Buy 02/08/2024 -36.78% Susquehanna $48 → $85 Maintains Neutral 02/08/2024 -25.62% JP Morgan $70 → $100 Maintains Overweight 02/08/2024 -10.75% Keybanc $75 → $120 Maintains Overweight 01/16/2024 -44.22% Keybanc $65 → $75 Maintains Overweight 01/05/2024 -36.78% Mizuho $75 → $85 Maintains Buy 12/26/2023 -18.19% Rosenblatt $85 → $110 Maintains Buy 12/18/2023 -47.94% Deutsche Bank $60 → $70 Downgrades Buy → Hold 11/20/2023 -47.94% Wells Fargo → $70 Initiates Coverage On → Overweight 11/10/2023 -59.09% Morgan Stanley → $55 Initiates Coverage On → Equal-Weight 10/18/2023 -51.65% Keybanc → $65 Initiates Coverage On → Overweight 10/10/2023 -53.14% Daiwa

ARM Holdings (NASDAQ:ARM) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/16/2024 8.23% Keybanc $65 → $75 Maintains Overweight 01/05/2024 22.66% Mizuho $75 → $85 Maintains Buy 12/26/2023 58.73% Rosenblatt $85 → $110 Maintains Buy 12/18/2023 1.01% Deutsche Bank $60 → $70 Downgrades Buy → Hold 11/20/2023 1.01% Wells Fargo → $70 Initiates Coverage On → Overweight 11/10/2023 -20.63% Morgan Stanley → $55 Initiates Coverage On → Equal-Weight 10/18/2023 -6.2% Keybanc → $65 Initiates Coverage On → Overweight 10/10/2023 -9.09% Daiwa Capital → $63 Initiates Coverage On → Buy 10/09/2023 -0.43% Loop Capital → $69 Initiates Coverage On → Buy 10/09/2023 22.66% Rosenblatt → $85 Initiates Coverage On → Buy 10/09/2023 — Wolfe Research Initiates Coverage On → Peer Perform 10/09/2023 -6.2% B of A Securities → $65 Initiates Coverage On → Buy 10/09/2023 -10.53% Mizuho → $62 Initiates Coverage On →