The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
ARM Holdings will reveal its full-year earnings on 10 February, and traders are anticipating revenue of £962 million and adjusted net income of £428 million.
These estimates equate to a 21% rise in revenue and a 25% jump in adjusted net income. The company will also announce its fourth-quarter figures on the same date, and investors are anticipating revenue of £262 million and adjusted net income of £111 million, which compares with the third-quarter revenue of £243 million and adjusted net income of £107 million.
The company continues to post an increase in revenue and profits, but concerns are growing that an oversaturation in the smartphone market will have a negative knock-on effect to the business. In the latest quarter, ARM derived the majority of its revenue from royalties, and last month Apple revealed its slowest growth rate of iPhone sales since it was launched.
This has traders worried about the company’s future earnings potential. ARM is suffering from low single-digit growth in its licensing division, and this is adding to the traders concerns.