shares fell more than 9% in extended trading on Wednesday after the chip-architecture maker issued light earnings guidance for the current quarter and the full fiscal year.shareholder letter
But Arm maintained its full-year view of $1.45 to $1.65 in adjusted earnings per share on $3.8 billion to $4.1 billion in revenue. Analysts surveyed by LSEG had been looking for $1.58 in adjusted earnings per share and revenue of $4.02 billion. The company said that as of this quarter, it is no longer reporting the number of Arms-based chips that were reported as shipped.
"As we shift our focus to higher-value, lower-volume markets such as data center servers, AI accelerators and smartphone applications processors, the number of chips reported as shipped is less representative of our performance as the growth in royalty revenue is concentrated in a smaller number of chips."