Arm Holdings plc ARM is scheduled to report its fourth-quarter fiscal 2024 results on May 8, after the bell.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is currently pegged at $885 million, suggesting sequential growth of 7.4%. We expect continued strong Royalty and License revenues to have driven the top-line strength in the quarter.
ARM has been witnessing strong Royalty revenues due to the resurgence of the smartphone market and increased market share outside mobile, a trend that is expected to have continued in the fourth quarter as well. Licensing revenues are expected to have been benefited by new ATA deals and robust demand for compute subsystems in the quarter.
Revenue strength and operating performance are likely to have driven EPS in the to-be-reported quarter, the consensus estimate for which stands at 30 cents, indicating 3.4% sequential growth.
ARM Holdings PLC Sponsored ADR Price and EPS Surprise 
ARM Holdings PLC Sponsored ADR price-eps-surprise | ARM Holdings PLC Sponsored ADR Quote
What Our Model Says
Our proven model predicts a likely earnings beat for ARM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ARM has an Earnings ESP of +5.26% and a Zacks Rank #2.
Other Stocks That Warrant a Look
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
AppLovin APP: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $970.5 million, indicating 35.7% growth from the year-ago quarter. For earnings, the consensus mark is pegged at 57 cents per share, suggesting a more than 100% rise from the year-ago quarter. The company has an average surprise of 26.5%.
APP currently has an Earnings ESP of +4.39% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
CareMax CMAX: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $215.6 million, up 24.6% from the year-ago quarter. The consensus mark for earnings loss is pegged at $8.7 per share, suggesting a decline of 61.4% from the year-ago quarter’s actual. The company has an average negative surprise of 110.8%.
CMAX currently has an Earnings ESP of +4.76% and a Zacks Rank of 3. The company is scheduled to post its first-quarter results on May 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
CareMax, Inc. (CMAX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
