:max_bytes(150000):strip_icc()/GettyImages-2155382583-e7fc234711074d2d9a1c67c3efee7229.jpg "Arm Holdings Stock Falls, Weighed Down by Earnings Guidance")
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Arm Holdings (ARM) shares gave back Wednesday’s gains in after-hours trading, dropping even as the chip-design company reported fiscal first-quarter earnings that were higher than expected.
The shares were recently down more than 12% after gaining more than 8% in the regular session. The shares have risen for much of 2024, climbing more than 90% this year.
The chip-design company projected adjusted earnings per share between 23 cents and 27 cents for the current quarter, leaving unchanged its full-year revenue and adjusted EPS guidance. The quarterly outlook was below some reported analyst consensus estimates.
In its fiscal first quarter ended June 30, Arm posted record revenue of $939 million, up 39% year-over-year and above the analyst consensus of $912 million, per Visible Alpha. Diluted earnings per share were 21 cents, compared to 10 cents in the year-ago quarter and expectations of 16 cents.
The growth was driven by licensing and other revenue, which jumped 72% to $472 million. Royalty revenue increased 17% to $67 million, which the company attributed to penetration of its Armv9-based chips.