ARM Holdings (Nasdaq: ARMH) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ARM Holdings beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.

Gross margins were steady, operating margins grew, net margins grew.

Revenue details
ARM Holdings tallied revenue of $233.1 million. The 22 analysts polled by S&P Capital IQ expected a top line of $224.3 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $187.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.05 for Q3 were 25% higher than the prior-year quarter's $0.04 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 94.3%, about the same as the prior-year quarter. Operating margin was 36.4%, 210 basis points better than the prior-year quarter. Net margin was 28.6%, 250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $243.8 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $906.2 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 820 members out of 896 rating the stock outperform, and 76 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 give ARM Holdings a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ARM Holdings is outperform, with an average price target of $31.67.

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