Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of British chip designer ARM Holdings (NASDAQ:ARMH) have skyrocketed by as much as 11% today after the company reported solid first-quarter earnings.
So what: Revenue in the first quarter totaled $263.9 million, easily topping the Street forecast of $251.1 million. Adjusted earnings per share came in at $0.24, again ahead of the consensus estimate of $0.21. The company said it inked 22 processor licenses in the first quarter across numerous end markets.
Now what: Royalty-bearing chip shipments grew 35% to 2.6 billion units, which was driven largely by mobile and embedded chips. CEO Warren East, who announced last month that he would retire this summer, said that ARM saw record royalty revenue this quarter and there has been strong uptake of its next-generation processors. ARM's guidance for the second quarter calls for revenue to be in-line with the "market expectations."
Interested in more info on ARM Holdings? Add it to your watchlist by clicking here.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.