Arm Holdings Shares Drop Over 11% Despite Beating Revenue and Earnings Estimates
Arm Holdings (ARM) shares experienced a significant decline, falling over 11% to reach multi-month lows. While the company reported record fiscal Q2 revenue of $1.44 billion—surpassing estimates—and earnings per share of $0.52, investors reacted negatively to specific segments of the financial report and broader market trends. A primary concern cited by analysts is the sluggish 8% growth in royalty revenue, which contrasted sharply with a 50% surge in licensing revenue. This weakness is attributed to softening smartphone memory prices. The sell-off is further compounded by a wider sector reset affecting major chipmakers like Nvidia and Qualcomm, leading to lowered price targets from firms such as Barclays and Goldman Sachs.
Topics: earnings report revenue growth stock price decline technology sector
Read the full article at Motley Fool
Part of the story Arm Holdings Shares Drop Over 11% Despite Beating Revenue and Earnings Estimates (11 articles)