Arm Stock Falls Despite Strong Earnings as Outlook Matches Analyst Estimates | Global News Avenue

Arm holding (arm) reported the third quarter results, which surpassed Wall Street estimates and raised the midpoint of its narrow sales outlook. But the stock traded expanded on Wednesday as investors may have been looking for stronger results.

Chip Designer and Nvidia (NVDA) Partners’ third-quarter revenue rose 19% year-on-year to a record $983 million, which is visible to the analyst consensus of Alpha compilation. The price of earnings was $252 million, at 24 cents per share, while $87 million, or 8 cents per share a year ago, also exceeded expectations.

By category, ARM’s royalty revenue rose 23% to $580 million, while its license and other revenue rose 14% to $403 million.

Looking ahead, ARM said it expects revenue in the fourth quarter to be $1.175 billion to $1.275 billion, a midpoint that matches estimates.

ARM also narrowed its full-year revenue forecast to $3.94 billion to $4.04 billion, increasing its midpoint from $3.95 billion to $3.99 billion. The midpoint of its adjusted prediction Earnings per share Climbed from $1.55 to $1.60. Analysts called for revenue of $3.96 billion and adjusted earnings per share of $1.57.

The result is after ARM was recently appointed as a key technology partner. 500 billion US dollars of joint venture Together with ARM majority owners Softbank, OpenAI and OracleOrcl) Construction AI SoftBank and Openai set up an additional joint venture for infrastructure in the United States this week Expand AI services For global businesses, start with Japan.

ARM shares fell about 6% in an extended transaction on Wednesday after the company earnings were released, removing earnings during regular meetings. The stock has more than doubled its value in the past 12 months until Wednesday’s closing price.