- ARM Holdings PLC forecasts Q2 2024 revenue between $780 million and $830 million, with a median estimation of $806.2 million.
- Expected Q2 adjusted earnings per share (EPS) between 23 cents and 27 cents; the estimate is 27 cents.
- Projected adjusted operating expenses for Q2 around $500 million, higher than the estimate of $472.7 million.
- 2025 forecast maintains adjusted EPS between $1.45 and $1.65, median estimate of $1.56.
- 2025 revenue projections continue to be between $3.80 billion and $4.10 billion, aligning closely with the $4 billion estimate.
- Projected adjusted operating expenses for 2025 remain around $2.05 billion, in line with estimates.
- First Quarter Results:
- Adjusted EPS reached 40 cents, beating the 34-cent estimate.
- Total revenue amounted to $939 million, surpassing the $905.4 million estimate.
- License and other revenue stood at $472 million, above the $421 million estimate.
- Royalty revenue was $467 million, slightly below the $483 million estimate.
- Adjusted operating expenses totaled $467 million, slightly less than the $480.3 million estimate.
- Adjusted operating income recorded at $448 million, exceeding the $396 million estimate.
- Adjusted operating margin was 47.7%, higher than the 43.5% estimate.
- Royalty revenue growth attributed to increased adoption of Armv9-based chips.
- ARM expects 100 billion AI-ready Arm-based devices to be deployed by the end of next year.
- Company increasing investments in Arm Compute Subsystems (CSS).
- CEO Rene Haas credits “AI demand and rising CSS adoption across major market segments” for the record revenue performance.
- As AI’s energy requirements grow, demand for ARM’s high-performance, power-efficient compute platform also rises.
Softbank Group on Smartkarma
Analysts on Smartkarma have been closely monitoring Softbank Group, providing insights into the company’s performance and future outlook. Victor Galliano‘s research highlights the positive sentiment around Softbank, noting that the focus on the Gen AI portfolio and the significant NAV discount are key drivers of the stock’s recent rally. Despite potential challenges such as Arm’s valuation and share buyback strategies, Galliano remains optimistic about the company’s long-term prospects.
Another analyst, Trung Nguyen, reports on Softbank Group‘s recent bond offering, aiming to raise funds for debt repayment and new investments. Leonard Law, CFA, provides fundamental credit analysis and trade recommendations for high-yield issuers in the region, including insights on Softbank Group. With varying sentiments among analysts, including bullish views from Galliano and a more cautious stance from another report questioning if the group NAV has peaked, investors have access to a range of perspectives on Softbank Group‘s performance and strategy.
A look at Softbank Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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 company that provides telecommunication services along with operating various online businesses, has received a mixed outlook based on the Smartkarma Smart Scores. While the company shows strong momentum with a score of 4, indicating positive market trend potential, its scores in areas such as value, dividend, growth, and resilience are moderate. This suggests a balanced but somewhat cautious long-term outlook for Softbank Group, as it strives for sustainable growth amidst market challenges.
In summary, SoftBank Group Corp. stands as a diverse entity offering telecommunication services and a range of online ventures. With varying Smart Scores across different factors, the company’s overall outlook appears to be cautiously optimistic, driven by strong momentum but tempered by moderate ratings in other key areas such as value, dividend, growth, and resilience.
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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