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ARM Holdings Earnings Up Next

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

ARM Holdings (Nasdaq: ARMH) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ARM Holdings's revenues will grow 14.7% and EPS will grow 31.3%.

The average estimate for revenue is $243.1 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, ARM Holdings tallied revenue of $266.9 million. GAAP reported sales were 24% higher than the prior-year quarter's $214.5 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.20. GAAP EPS of $0.05 for Q4 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.

Recent performance
For the preceding quarter, gross margin was 94.8%, 40 basis points worse than the prior-year quarter. Operating margin was 35.4%, 40 basis points worse than the prior-year quarter. Net margin was 25.8%, 190 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.04 billion. The average EPS estimate is $0.91.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 825 members out of 919 rating the stock outperform, and 94 members rating it underperform. Among 229 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 197 give ARM Holdings a green thumbs-up, and 32 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 $35.67.

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