• ARM Holdings PLC’s 1Q revenue forecast surpasses estimates, expecting to be between $875 million and $925 million against an earlier estimate of $868 million.
• The projected adjusted EPS (Earnings Per Share) is anticipated to fall in the range of 32c to 36c, outpacing the estimate of 31c.
• Adjusted operating expenses are estimated at around $475 million, slightly lower than the earlier estimate of $477.6 million.
• For the year 2025, ARM predicts its adjusted EPS to range from $1.45 to $1.65, slightly exceeding the estimate of $1.53.
• Furthermore, the company sees its 2025 revenue to be between $3.80 billion and $4.10 billion compared to a previous estimate of $4.01 billion.
• Adjusted 2025 operating expenses are still predicted to be around $2.05 billion, which is slightly higher than the estimate of $2.01 billion.
• 4th-quarter results show an adjusted EPS of 36c, significantly higher than an anticipated 30c, and total revenue stands at $928 million, beating an estimate of $880.4 million.
• Royalty revenue amounts to $514 million which is higher than the estimated $504.2 million, and adjusted operating expenses of $511 million exceed the earlier estimate of $490.1 million.
• The Adjusted operating income is reported to be $391 million, better than an estimate of $355.9 million, boosting the adjusted operating margin to 42.1%, against an estimate of 40.5%.
• CEO Rene Haas announced over $3 billion in revenue for the first time this financial year, expecting strong tailwinds heading into FYE25 driven by AI’s increased demand of Arm-based technology across all markets.
• Haas also said that all AI software models, from GPT to Llama, rely and run on the Arm technology platform due to its increased compute capability and greater power efficiency.
Softbank Group on Smartkarma
On Smartkarma, investment analysts are closely monitoring SoftBank Group’s performance, with differing sentiments reflected in their reports. Victor Galliano‘s analysis raises concerns about SoftBank’s valuation hurdles and potential risks associated with Arm’s valuation and JPY weakness. Despite trading at a significant discount to NAV, downside risks remain, especially regarding Arm’s valuation and possible JPY appreciation, as highlighted in Galliano’s reports.
Conversely, Trung Nguyen‘s report on Softbank Group‘s Q3 FY 2023-24 results paints a positive picture, citing decent investment gains and a significant increase in NAV. Nguyen’s bullish outlook contrasts with Galliano’s more bearish perspectives, emphasizing the importance of considering various analysts’ viewpoints when assessing SoftBank Group’s financial health and investment potential.
A look at Softbank Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
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 telecommunications provider, is forecasted to have a positive long-term outlook according to the Smartkarma Smart Scores. With a top score of 5 in Momentum, indicating strong upward movement, the company is poised for potential growth. Although trailing in Value, Dividend, Growth, and Resilience scores, the high Momentum score suggests a promising future for SoftBank Group.
SoftBank Group Corp. primarily offers telecommunication services and runs various online businesses. With moderate scores in Value, Dividend, Growth, and Resilience, the company shines in Momentum, indicating a potential for significant forward momentum and growth. Investors may want to keep an eye on SoftBank Group as it navigates its strategic position in the market based on these Smartkarma Smart Scores.
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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