Why ARM Holdings Is Up 53% During the Last 12 Months

ARM  (LSE: ARM  ) (NASDAQ: ARMH  ) has advanced 53% to 896 pence during the last twelve months, making the share one of the best performers in the FTSE 100.

The company, which designs microprocessors used in a wide variety of technology devices, including Samsung mobiles, Asus netbooks and Sony tablets, seems to have impressed investors with a series of encouraging statements.

During July, ARM announced half-year results for 2012 that highlighted an interim dividend of 1.67 pence per share, an increase of 20% from 2011's payout, as well as a 23% rise in second-quarter pre-tax profits to £67 million. Also revealed was the inclusion of ARM technology in a new range of Microsoft tablet computers.

During October, ARM's third-quarter statement highlighted a strong normalized free cash flow that nearly doubled the Q2 performance, jumping from 47 million pounds to 88 million pounds. Earnings per share were also on the rise, up 22% to 3.71 pence.

Then in February, ARM disclosed full-year results that revealed the final dividend to be 2.83 pence per share, up 35%. The annual numbers also showed revenue up 17% to 577 million pounds and pre-tax profits up 20% to 277 million pounds.

Warren East, ARM's chief executive, said:

ARM has seen good revenue and earnings growth throughout 2012. Customers are developing products to meet the needs of the post PC era and are driving demand for ARM's most advanced technology. In Q4 we again saw influential market-leaders demonstrating their commitment to ARM technology by licensing our latest products. Royalty revenue has also grown strongly during Q4 underpinned by ARM's market share gains and an increased royalty percentage from Cortex-A class processors being deployed into smartphones and tablets.

East was also passionate about ARM's prospects for 2013, citing new markets and a record order backlog. He believes the company's "leading technology" and "thriving ecosystem of partners" will place it in a position to succeed.

ARM's first-quarter update for 2013 will be published on April 23, which may reveal further positive news that can encourage investors.

If you already own ARM shares and are looking for additional blue-chip winners, this exclusive wealth report reviews five particularly attractive FTSE possibilities.

Indeed, all five suggestions offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool the "5 Shares You Can Retire On"!

Just click here for the report -- it's free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2364166, ~/Articles/ArticleHandler.aspx, 10/24/2014 10:57:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement