ARM Holdings (Nasdaq: ARMH) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), ARM Holdings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
ARM Holdings logged revenue of $260.2 million. The 19 analysts polled by S&P Capital IQ anticipated revenue of $252.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $212.5 million.

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

EPS details
EPS came in at $0.22. The eight earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. Non-GAAP EPS of $0.22 for Q2 were 29% higher than the prior-year quarter's $0.17 per share. GAAP EPS of $0.01 for Q2 were 75% lower 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 94.0%, 80 basis points worse than the prior-year quarter. Operating margin was 7.4%, much worse than the prior-year quarter. Net margin was 6.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $269.5 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $0.98.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 810 members out of 911 rating the stock outperform, and 101 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give ARM Holdings a green thumbs-up, and 29 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 $46.36.

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