(AOF) – When publishing its results since its return to the stock market, Arm revealed disappointing revenue prospects. In the third quarter, the chip designer is targeting sales of between $720 million and $800 million and adjusted earnings per share of between 21 and 28 cents. Wall Street is targeting $767.84 million, according to the LSEG consensus.
In the second quarter, ended at the end of September, the group suffered a net loss of $110 million compared to a net profit of $114 million a year earlier. Adjusted earnings per share came in at 36 cents, 10 cents better than expected. Its revenues jumped 28% to $806 million, beating the consensus of €744.31 million.
AOF – LEARN MORE
Growing market and price tensions
According to SIA, global chip sales stood at $151.7 billion in the first quarter of 2022, an increase of 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly exceed supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good room for maneuver and benefit from reinforced negotiating power. However, wage increases and component prices could weigh on future performance.