ARM Holdings Beats on Both Top and Bottom Lines
ARM Holdings (NAS: ARMH) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), ARM Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
ARM Holdings notched revenue of $212.5 million. The 21 analysts polled by S&P Capital IQ predicted a top line of $203.7 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $189.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The eight earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.04 for Q2 were 33% higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 94.8%, 70 basis points better than the prior-year quarter. Operating margin was 37.8%, 1,030 basis points better than the prior-year quarter. Net margin was 29.1%, 660 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $214.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $858.3 million. The average EPS estimate is $0.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 824 members out of 892 rating the stock outperform, and 68 members rating it underperform. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give ARM Holdings a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ARM Holdings is outperform, with an average price target of $29.90.
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The article ARM Holdings Beats on Both Top and Bottom Lines originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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