Investing.com -- Chip designer Arm Holdings (NASDAQ:ARM) reported a better-than-expected quarterly profit, but its outlook for the current quarter was largely in line with Wall Street expectations which sent the shares down more than 5% in after-hours trading.
The company posted third-quarter earnings per share of $0.39, surpassing analysts' estimates of $0.25. Revenue for the quarter came in at $983 million, also above expectations of $946.8 million.
Arm forecast earnings per share between $0.48 and $0.56 for fourth quarter, compared with analysts’ average estimate of $0.53. The company expects revenue of $1.175 billion to $1.275 billion, roughly aligning with the consensus of $1.23 billion.
Arm licenses its chip designs to major semiconductor firms and has benefited from the growing adoption of AI, as customers look to integrate more power-efficient computing architectures.
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