ARM Holdings is set to report Q2 earnings with modest increase in revenue, strong position in AI hardware market

From Nasdaq: 2024-11-04 13:11:00

ARM Holdings plc will report its second-quarter fiscal 2025 results on Nov. 6, with an estimated 25 cents earnings and $808.9 million in revenues, marking a marginal increase. ARM has a strong earnings surprise history, but the current model does not predict a beat this time. The company’s Earnings ESP is 0.00% with a Zacks Rank #3.

ARM leverages AI for chip designs used in smartphones and data centers, with major clients like Apple, Nvidia, and Qualcomm. Revenue growth in the upcoming quarter is expected from Royalty and License revenues, despite slower year-over-year growth due to revenue recognition timing. Royalty revenues forecast a 20% increase YoY.

ARM stock has surged 88.2% YTD, trading at 75.65X forward earnings, above the industry average. Despite modest revenue growth recently, ARM’s position in the AI hardware market suggests future potential. Investors may wait for a potential correction to enter the market for optimal returns.

Zacks experts highlight a company poised for significant growth, targeting millennial and Gen Z audiences with nearly $1 billion in revenue last quarter. An ideal entry point is suggested after a recent pullback. For more insights and stock recommendations, visit Zacks Investment Research.



Read more at Nasdaq: Arm Holdings Stock Before Q2 Earnings: To Buy or Not to Buy?