- ARM Holdings predicts fourth-quarter revenue between $1.18 billion and $1.28 billion, with analysts estimating $1.23 billion.
- Expected adjusted earnings per share (EPS) for the fourth quarter are between 48 cents and 56 cents, against estimates of 53 cents.
- Fourth-quarter adjusted operating expenses are anticipated to be $590 million, higher than the estimated $566 million.
- For the year, ARM anticipates adjusted EPS between $1.56 and $1.64, aligning with the estimate of $1.56.
- The annual revenue forecast is between $3.94 billion and $4.04 billion, with an estimate of $3.96 billion.
- Annual adjusted operating expenses are projected to be approximately $2.07 billion, slightly above the estimate of $2.05 billion.
- In the third quarter, ARM reported adjusted EPS of 39 cents, surpassing the estimated 34 cents.
- Total third-quarter revenue reached $983 million, beating expectations of $946.8 million.
- License and other revenue for Q3 amounted to $403 million, above the $378.6 million estimate.
- Royalty revenue in Q3 was $580 million, exceeding the forecast of $568.4 million.
- Third-quarter adjusted operating expenses were $522 million, slightly below the $523.5 million estimate.
- Q3 adjusted operating income was $442 million, higher than the expected $397.1 million.
- Adjusted operating margin for the third quarter was 45%, outperforming the estimated 42% margin.
- ARM’s Armv9 technology is responsible for 25% of its royalties, driven by wider adoption and new deployments.
- The CEO, Rene Haas, stated that ARM delivered record quarterly revenue due to the robust adoption of the Armv9 and CSS compute platforms.
- The deployment of ARM CSS in volume is generating record royalty revenue in both mobile and cloud markets.
Softbank Group on Smartkarma
Analysts on Smartkarma have provided insights on Softbank Group. Nico Rosti‘s report titled “Profit Targets for Softbank Group (9984 JP) After Stargate AI Project Announcement” highlights the stock’s surge of over 10% following a $500B venture with OpenAI and Oracle, indicating a bullish sentiment despite being overbought. Trung Nguyen‘s analysis in “Lucror Analytics – Morning Views Asia” discusses the impact of US Treasuries sell-off on high yield issuers like Softbank Group, with a bullish outlook.
On the contrary, Tech Supply Chain Tracker leans bearish in their report “Tech Supply Chain Tracker (30-Nov-2024)” mentioning Qualcomm-Intel deal speculation fading and China’s semiconductor industry growth potentially threatening South Korean companies. Victor Galliano‘s report “Softbank (9984 JP): The Importance of Arm Is More a Curse than a Blessing” expresses bearish sentiments regarding SoftBank’s reliance on Arm for NAV growth and potential risks. David Blennerhassett‘s analysis in “StubWorld: PCCW’s Questionable NAV Premium. Plus Softbank Vs. Arm” provides insights on Softbank’s NAV in comparison to ARM Holdings, with a bullish perspective.
A look at Softbank Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
SoftBank Group Corp., a major player in the telecommunications industry, is positioned for a promising long-term outlook based on its Smartkarma Smart Scores. With a strong momentum score of 5, the company demonstrates impressive growth potential and market traction. Additionally, its value and growth scores of 3 indicate a solid foundation and potential for future expansion. Although the dividend and resilience scores are more moderate at 2, Softbank Group‘s overall outlook remains optimistic, fueled by its momentum and growth prospects.
SoftBank Group Corp. stands out in the telecommunications sector, offering a range of services including high-speed internet connections, e-commerce, and online advertising. With a mix of stable performance and growth opportunities, Softbank Group‘s Smartkarma Smart Scores highlight its potential for long-term success. Investors may find the company attractive for its strong momentum, solid value, and growth prospects, positioning it as a key player in the evolving technology and telecommunications market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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