Arm Surpasses Expectations with Q3 Earnings Beat Estimates, Shares Soar Over 40%

Benzinga

Arm reported fiscal third-quarter earnings that beat analyst estimates for both revenue and earnings per share. Revenue was $824 million compared to the estimated $761 million. Earnings per share were 29 cents versus an estimated 25 cents. Arm also provided a strong forecast for the fourth quarter, estimating 28 to 32 cents EPS on $850 to 900 million revenue, above consensus estimates. Royalty and license revenue grew year-over-year, driven by a smartphone recovery and growth in automotive, cloud, and AI chip demand.

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00:00 It's Benzinga and here's what's on the block. ARM reported fiscal third quarter earnings that

00:04 beat analyst estimates for both revenue and earnings per share. Revenue is $824 million

00:09 compared to the estimated $761 million. Earnings per share were $0.29 versus an estimated $0.25.

00:14 ARM also provided a strong forecast for the fourth quarter estimating $0.28-$0.32 EPS on

00:20 $850-$900 million revenue above consensus estimates. Royalty and license revenue grew

00:25 year over year driven by a smartphone recovery and growth in automotive, cloud, and AI chip demand.

00:30 More companies are choosing to license ARM CPU designs for AI applications. ARM shares

00:35 jumped over 40% in after-hours trading. For all things money visit Benzinga.com

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