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Key Takeaways
- Shares of Arm Holdings rallied Thursday, reversing losses in late-Wednesday trading after the company’s results landed.
- The chip designer beat expectations with its revenue and earnings, but its full-year sales outlook underwhelmed.
- Analysts at Barclays raised their price target, calling for double-digit growth next year.
Arm Holdings (ARM) shares climbed Thursday, reversing course after the stock initially dipped following the company’s fiscal second-quarter earnings results.
The chip designer posted revenue and net income that beat expectations, but its sales outlook disappointed, initially sending shares more than 4% lower.
Revenue rose 5% year-over-year to $844 million, while net income swung to a profit of $107 million, or 10 cents per share, from a loss of $110 million, or 11 cents per share.
However, the midpoint of the company’s full-year revenue forecast of $3.8 billion to $4.1 billion, unchanged from the quarter prior, was lower than analysts projected.
Analysts at Barclays raised their price target to $145 from $125, saying they expect double-digit growth in 2025 as clients grow and prices increase for customers who have moved to Arm’s v9 central processing unit designs.a
The stock finished up about 4%. Shares of Arm have more than doubled in 2024.