Arm Holdings plc (ARM) is set to announce its fourth-quarter fiscal 2024 results on May 8, following the market close. Analysts project revenues for the quarter to reach $885 million, indicating a 7.4% increase from the previous quarter. The company is expected to have seen a boost in Royalty and License revenues, driven by the smartphone market’s resurgence and expanding market share beyond mobile devices.
The strong Royalty revenues are attributed to the growing smartphone market and increased presence in non-mobile markets, a trend likely to have continued in the fourth quarter. Additionally, Licensing revenues are anticipated to have benefited from new ATA deals and high demand for compute subsystems during the period.
The robust revenue performance and operational efficiency are expected to have contributed to an estimated EPS of 30 cents for the quarter, reflecting a 3.4% sequential growth. Based on our analysis, ARM is likely to surpass earnings expectations this quarter, supported by a positive Earnings ESP and a favorable Zacks Rank.
Investors are keen to see how the top-line improvement will impact ARM Holdings’ Q1 earnings. With the company’s strategic positioning in the market and anticipated growth in key revenue streams, analysts are optimistic about the upcoming financial results. Stay tuned for the official announcement on May 8 to gain insights into ARM’s performance and market outlook.
