©Reuters
Investing.com – ARM posted a surge in afterhours trading on Wednesday after the chip designer raised its annual guidance and provided stronger guidance for the current quarter, as royalty revenue boosted demand led by ‘artificial intelligence.
Arm Holdings ADR (NASDAQ:) rose 22% in after-hours trading following the report.
The chip designer, which counts Nvidia (NASDAQ:), Intel (NASDAQ:) and Apple (NASDAQ:) among its backers, reported fiscal third-quarter adjusted earnings of $0.29 per share on revenue of $824. Millions of dollars. That was above Wall Street estimates for earnings per share of $0.25 on revenue of $761.6 million.
Looking ahead, the company guided for adjusted earnings per share of $1.20 to $1.24 on revenue of $3.16 to $3.21 billion, up from its previous estimate for adjusted earnings per share between $1 and $1.10 on revenues between $2.96 and $3.08 billion.
For the fourth quarter, the company expects adjusted earnings per share of $0.28 to $0.32 on revenue of $850 million to $900 million. This was higher than estimates for EPS of $0.21 on revenue of $780.3 million.