Arm: better-than-expected quarter, targets maintained

(CercleFinance.com) - British processor manufacturer Arm Holdings reported better-than-expected results for its first fiscal quarter on Wednesday evening, buoyed by strong demand for its licenses.


Arm, which counts AWS, Google, Microsoft and Oracle among its major customers, reported a 39% increase in sales to $938 million for its quarter to the end of June.

The consensus was for quarterly sales of $905 million.

Despite this better-than-expected performance, the Cambridge-based group was content to maintain its full-year sales outlook of between $3.8 and $4.1 billion.

Beyond this disappointment, some analysts regret that Arm's revenues now come more from its licensing agreements than from royalties collected on chips manufactured and marketed by its partners.

Investors, who consider the stock to be richly valued after a gain of over 70% this year, were consequently taking profits on the stock, which dropped 12% on Thursday morning on the New York Stock Exchange.

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