We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $919.9 million. The consensus estimate for earnings is pegged at 35 cents per share.
ARM Holdings PLC Sponsored ADR Price and EPS Surprise
ARM has been witnessing steady revenue growth over the past years. This growth is likely to have been hampered due to the shift in the AI trend, which is an important sales driver. However, the strategic positioning of ARM within the AI ecosystem indicates a potential for sustained growth beyond the current excitement of AI.
The company forecast sequential growth of 20% in Royalty revenues for the first quarter of fiscal 2025 on the higher adoption of v9, which typically commands double the royalty rates than Armv8 products. Royalty revenues have been propelled by exponential growth of the smartphone market and the increase in market share outside mobile.
The company’s healthy gross margin has not translated into a strong operating margin, which contracted from more than 26% to just under 3% year over year. There could be long-term benefits to the rising costs of R&D, depicting growth and innovation in the future.
What Our Model Says
Our proven model predicts an earnings beat for ARM this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ARM has an Earnings ESP of +5.71 and a Zacks Rank #3.
Other Stocks That Warrant a Look
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Block (SQ - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $6.2 billion, indicating 12.3% growth from the year-ago quarter’s actual. The consensus mark for earnings is pegged at 76 cents per share, suggesting a year-over-year increase of 94.9%. The company has an average surprise of 12.8%.
SQ currently has an Earnings ESP of +9.93% and a Zacks Rank of 2. The company is scheduled to post its second-quarter results on Aug 1.
Procore Technologies (PCOR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $275.5 million, indicating 20.5% growth from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 24 cents per share, suggesting a year-over-year rise of more than 100%. The company has an average surprise of 150.1%.
PCOR currently has an Earnings ESP of +5.42% and a Zacks Rank of 3. The company is scheduled to declare its second-quarter results on Aug 1.
Image: Bigstock
Will Top-Line Improvement Aid Arm Holdings' (ARM) Q1 Earnings?
Arm Holdings plc (ARM - Free Report) is scheduled to report its first-quarter fiscal 2025 results on Jul 31, after market close.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $919.9 million. The consensus estimate for earnings is pegged at 35 cents per share.
ARM Holdings PLC Sponsored ADR Price and EPS Surprise
ARM Holdings PLC Sponsored ADR price-eps-surprise | ARM Holdings PLC Sponsored ADR Quote
ARM has been witnessing steady revenue growth over the past years. This growth is likely to have been hampered due to the shift in the AI trend, which is an important sales driver. However, the strategic positioning of ARM within the AI ecosystem indicates a potential for sustained growth beyond the current excitement of AI.
The company forecast sequential growth of 20% in Royalty revenues for the first quarter of fiscal 2025 on the higher adoption of v9, which typically commands double the royalty rates than Armv8 products. Royalty revenues have been propelled by exponential growth of the smartphone market and the increase in market share outside mobile.
The company’s healthy gross margin has not translated into a strong operating margin, which contracted from more than 26% to just under 3% year over year. There could be long-term benefits to the rising costs of R&D, depicting growth and innovation in the future.
What Our Model Says
Our proven model predicts an earnings beat for ARM this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ARM has an Earnings ESP of +5.71 and a Zacks Rank #3.
Other Stocks That Warrant a Look
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Block (SQ - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $6.2 billion, indicating 12.3% growth from the year-ago quarter’s actual. The consensus mark for earnings is pegged at 76 cents per share, suggesting a year-over-year increase of 94.9%. The company has an average surprise of 12.8%.
SQ currently has an Earnings ESP of +9.93% and a Zacks Rank of 2. The company is scheduled to post its second-quarter results on Aug 1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Procore Technologies (PCOR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $275.5 million, indicating 20.5% growth from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 24 cents per share, suggesting a year-over-year rise of more than 100%. The company has an average surprise of 150.1%.
PCOR currently has an Earnings ESP of +5.42% and a Zacks Rank of 3. The company is scheduled to declare its second-quarter results on Aug 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.