Chip Developer Arm Holdings Surpasses Expectations with Impressive Results for Q4 of Fiscal Year 2024

Earnings per share reached $0.36, significantly higher than analysts' forecasted $0.21. This not only surpassed market expectations but also the company's own prediction of 28 to 32 cents per share. Revenue increased in the fourth quarter to $928 million, well above the anticipated $780.4 million.

For the entire fiscal year, Arm recorded revenue of $3.233 billion, an increase of over 21 percent compared to the previous year's $2.679 billion. Despite this strong growth, revenue forecasts for the new fiscal year, which runs until the end of March 2025, fell short of expectations. Arm expects revenues between $3.8 and $4.1 billion and earnings between $1.45 and $1.65 per share.

For the current quarter, the company forecasts revenues of between 875 and 925 million US dollars and an adjusted earnings per share of 32 to 36 cents. Arm emphasizes that the company's long-term strategy is aimed at promoting sustainable growth, especially by entering the data center market, where particularly lucrative royalties for the use of the Arm architecture are incurred.

Arm's technology is present in nearly all smartphones, and major companies like Apple and Qualcomm use Arm's architectures for their products. After Arm returned to the stock market in September 2023, its share price demonstrated a strong upward trend in NASDAQ trading despite the current decline of 6.18 percent to $99.51 since the IPO.