We Are Placing ARM Holdings Under Review

We are digging deep into ARM Holding's strong 4Q results and we are likely to increase our fair value estimate

Brian Colello, CPA 2 February, 2011 | 9:02AM
Facebook Twitter LinkedIn

We are placing ARM Holdings (ARM) under review while we dig deeper into the company's fourth-quarter earnings and revisit our long-term assumptions surrounding the firm. The company reported excellent fourth-quarter results that were modestly ahead of our expectations. Revenue was up 14% sequentially, driven by higher processor royalty revenue due to an increase in ARM-based chip shipments into handsets and a variety of other electronic devices. Meanwhile, processor licensing revenue came in a little ahead of our expectations, up 28% sequentially, which we suspect is due to the firm's recent agreements with Microsoft (

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement