ARM Holdings ADR

Goodbye poor.

Outlook meh. Chart meh

Money may go into $AFRM (-0,91 %)

07.11.2024

iPhone sales boost revenue for chip designer Arm + Qualcomm beats expectations for fourth quarter + Novo Nordisk: weight loss and diabetes drugs flourish + Trump election victory sends bank shares sharply higher + Aurora Cannabis quarterly figures

The chip designer Arm Holdings $ARM (+0,32 %) achieved higher sales in the second quarter than in the same period of the previous year. The company benefited from the sale of Apple's $AAPL (+0,15 %) iPhones, Arm announced on Wednesday after the close of the US stock exchange. The British chip designer reported a profit of 30 US cents per share for the past quarter, adjusted for share-based payments and other factors. Analysts had expected a profit of 26 cents per share. Arm's turnover rose by five percent to 844 million dollars, compared to analysts' estimates of 808.4 million. However, the company forecast revenue for the current quarter to be only in the middle of estimates. Arm expects revenue to be between $920 million and $970 million, with a midpoint of $945 million, compared to the average analyst estimate of $944.3 million. The company expects third-quarter earnings of between 32 and 36 cents per share. Analysts had projected earnings of 34 cents per share for the third quarter. Arm collects a license fee for every chip sold that uses its technology. Arm's designs power almost every smartphone in the world.

The results of Qualcomm $QCOM (-0,02 %) 's fourth-quarter results were better than expected as the chip supplier posted its fifth consecutive quarter of record automotive sales. Adjusted earnings per share rose to $2.69 from $2.02 a year ago, above the $2.57 consensus surveyed by Capital IQ. Non-GAAP revenue rose 18% year-over-year to $10.24 billion in the three months ended Sept. 29, beating Wall Street expectations of $9.93 billion. Qualcomm shares rose 7% in after-hours trading on Wednesday. Sales at Qualcomm's CDMA technology division, which represents its semiconductor business, rose 18% to $8.68 billion, driven by a 68% increase in the auto division to $899 million. Cell phone sales rose 12% to $6.1 billion, while the Internet of Things division increased 22% to $1.68 billion, the company said. Technology licensing revenue rose 21% to $1.52 billion. Qualcomm expects first-quarter adjusted earnings per share of $2.85 to $3.05 on revenue of between $10.5 billion and $11.3 billion.

The pharmaceutical company Novo Nordisk $NOVO B (-0,08 %) continues to do good business with its top-selling diabetes and weight-loss drugs Ozempic and Wegovy. Group-wide sales of the Danish company increased by 21 percent to 71.3 billion Danish crowns (around 9.6 billion euros) in the third quarter, as the manufacturer announced in Baegsvaerd on Wednesday. The bottom line profit climbed by a good fifth to 27.3 billion Danish kroner. The Group thus performed better than analysts had expected. The management is now once again narrowing its sales and profit expectations for the year. An increase in revenue at constant exchange rates of 23 to 27 percent is now expected for the year as a whole. This is one percentage point more at the lower end, but also one percent less at the upper end than recently. The Danes are now predicting an increase in operating profit of 21 to 27 percent, excluding exchange rate effects. This means that the Group is also expecting slightly more at the lower end and slightly less at the upper end than before. In the summer, Novo Nordisk had already lowered its target for this key figure.

Donald Trump's clear victory in the US presidential election catapulted the share prices of US banks and financial services providers higher on Wednesday. Goldman Sachs and JPMorgan climbed to record highs in the Dow Jones Industrial benchmark index. Goldman $GS (+0,08 %) recently gained around 12 percent, while JPMorgan $JPM (+0,03 %) the gain amounted to more than 9 percent. In the S&P 500 Citigroup $C (+0,02 %), Wells Fargo $WFC (+0,06 %) and Morgan Stanley $MS (+0,05 %) were similarly strong. Capital One Financial $COF (+0 %)gained over 13 percent. A more protectionist trade policy is emerging in the USA under Trump. There is a threat of high import duties and corporate taxes could be lowered. However, debt could also increase. Bank shares benefited on Wednesday from the prospect of looser financial market regulation. In addition, interest rates could rise in view of a possible increase in debt - this would also be to the benefit of banks, for example in the lending business.

Aurora Cannabis figures $ACB (-0,87 %)

• Record adjusted EBITDA1 of USD 10.1 million, an increase of 210% year-on-year
• Quarterly net revenue1 increased 29% to $81.1 million, with 41% growth in Global Medical Cannabis
• Reaffirms target of positive free cash flow1 in the quarter ending December 31, 2024
• Maintains a strong balance sheet with ~$152 million in cash and a debt-free cannabis business2

Thursday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

H & M Hennes & Mauritz (B) 3.25 SE

BP 0.08 USD

Ford Motor 0.15 USD

Unilever 0.37 GBP

Quarterly figures / company dates USA / Asia

12:30 Moderna quarterly figures

12:55 Under Armour quarterly figures

22:00 Expedia | News Quarterly figures

Quarterly figures / Company dates Europe

06:45 Adtran Networks | Zurich Insurance | Basler Quarterly figures

07:00 Daimler Truck | Heidelberg Materials | Lanxess | Nemetschek | Nordex | Rational | Arcelormittal | AMS-Osram | Aareal | Hamborner Reit | Knaus Tabbert quarterly figures

07:15 Air France-KLM quarterly figures

07:30 Compugroup | Delivery Hero | Munich Re | Rheinmetall | Telefonica | Adyen | Deutz quarterly figures

07:30 Dürr | Instone | Koenig & Bauer | Mutares | SGL Carbon | SNP Schneider quarterly figures

07:50 Suss Microtec quarterly figures

08:00 Verbund AG | PNE | BT Group | National Grid | CRH Quarterly Figures | Rolls-Royce Trading Update 3Q

10:00 Qiagen quarterly figures

14:30 Hochtief quarterly figures

17:50 Pirelli quarterly figures

18:00 Freenet quarterly figures

Economic data

• 08:00 DE: Trade balance September trade balance calendar and seasonally adjusted FORECAST: +19.0 bn Euro previous: +22.5 bn Euro Exports FORECAST: -2.8% yoy previous: +1.3% yoy Imports FORECAST: -0.2% yoy previous: -3.4% yoy
• 08:00 DE: Production in the manufacturing sector September seasonally adjusted FORECAST: -0.9% yoy previous: +2.9% yoy | Turnover in the service sector October
• 11:00 EU: Retail Sales September Eurozone PROGNOSE: +0.5% yoy previous: +0.2% yoy
• 13:00 UK: BoE, outcome and minutes of the Monetary Policy Council meeting and Monetary Policy Report October Bank Rate FORECAST: 4.75% previously: 5.00%
• 14:30 US: Initial jobless claims (week) FORECAST: 220,000 PREVIOUS: 216,000
• 14:30 US: Productivity ex Agriculture (1st release) 3Q annualized PROGNOSE: +2.5% yoy 2Q: +2.5% yoy Unit labor costs PROGNOSE: +1.1% yoy 2Q: +0.4% yoy
• 20:00 US: Fed, outcome of FOMC meeting Fed funds target rate FORECAST: 4.50% to 4.75% Previous: 4.75% to 5.00%

Arm Holding Q3 2024 $ARM (+0,32 %)

Financial performance:

• Revenue: Total revenue for the second quarter of FY2025 was $844 million, an increase of 5% year-over-year. The increase in revenue was driven by record levels of license fees and continued strength in the licensing business.
• Net Income: GAAP net income was $107 million, compared to a loss of $110 million in the same period last year. Non-GAAP net income was $317 million, but a decrease from $378 million in the prior year.

Balance Sheet Overview:

• Assets: Total assets were $8,086 million as of September 30, 2024, including $1,498 million in cash and cash equivalents.
• Liabilities: Total liabilities decreased to $2.074 million compared to $2.632 million at March 31, 2024.
• Shareholders' equity: Shareholders' equity was $6.012 million.

Income structure:

• Gross profit: GAAP gross profit was $812 million, while non-GAAP gross profit was $820 million, representing an exceptionally high non-GAAP gross margin of 97%.
• Operating Income: GAAP operating income totaled $64 million, and non-GAAP operating income totaled $326 million.

Cash Flow Overview:

• Operating Activities: Net cash provided by operating activities was $6 million.
• Free Cash Flow: Non-GAAP free cash flow for the quarter was $(65) million.

Key Metrics and Profitability Metrics:

• Operating Margin: GAAP operating margin was 8%, while non-GAAP operating margin was 39%.
• Gross margin: Non-GAAP gross margin reached a remarkable 97%.

Segment information:

• Royalties: License fees increased 23% year-over-year to $514 million, supported by the launch of Armv9 and a recovery in the smartphone market.
• License revenue: License revenue decreased 15% year over year to $330 million.

Competitive position:

• Arm is benefiting from strong growth in its license fee business, with Armv9 playing a significant role in this increase. The company has expanded its Arm Total Access and Arm Flexible Access programs, demonstrating high customer retention.

Forecasts and management comments:

• Q3 FYE25 revenue guidance: Revenue is expected to be between $920 million and $970 million.
• Non-GAAP operating expenses: Expected to be approximately $500 million.

Risks and Opportunities:

• Opportunities: Continued growth in royalties and expansion of access programs.
• Risks: Fluctuations in license revenue due to variation in timing and size of agreements.

Summary of results:

Positives:

Strong growth in license fees: Increase of 23% compared to the previous year.

High non-GAAP gross margin: At 97%, the company is showing impressive profitability.

Increase in annual contract value: Increase of 13%.

Expansion of access programs: Arm Total Access and Flexible Access show expanded customer loyalty.

Improved GAAP net income: Positive development compared to the previous year.

Negative aspects:

Decline in license revenue: A 15% decrease year-over-year.

Decline in non-GAAP net income: Lower than in the previous year.

Negative free cash flow: Free cash flow was negative in the quarter.

Increased non-GAAP operating expenses: Increased engineering costs due to higher headcount.

Decrease in cash and cash equivalents: Reduction compared to March 31, 2024.

Arm Holdings $ARM (+0,32 %)
has just announced its quarterly figures.

The earnings per share (EPS) are $0,30 and exceeds expectations of $0,26.

The turnover amounted to $0,84 billion and is also above expectations of $0,81 billion.

Earnings next week

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Week in review 26.10.

New 52-week highs or all-time highs: Gold, Silver, Booz Allen Hamilton, Boyd Gaming, Carvana, Endeavour Silver, GE Vernova, Iron Mountain, L3Harris, Philip Morris, Reddit, SAP, Sea Ltd, Teledyne Netflix, Nvidia, Microstrategy, Palantir PayPal, SoFi, Wells Fargo, Welltower, Wyndham Hotels & Resorts

Palantir (+170%) points to 2024 Vistra (+231%) and Nvidia (+202%) the third-best performer in the S&P 500

Tesla +20% after good quarterly figures, best trading day in 11 years, cheaper new model coming in H1/2025, +9% since the beginning of the year

New Apple MacBooks with M4, Mac mini and iMac will be presented next Monday, Apple shares +26% since the beginning of the year

McDonald's E.coli - bacteria in burger meat, one dead and several injured, shares fall 8%, +1% since the beginning of the year

SAP with good quarterly figures, +61% since the beginning of the year

Deutsche Bank with good quarterly figures, +26% since the beginning of the year

Mercedes with poor quarterly figures due to weak business in China, -9% since the beginning of the year

Microsoft-shareholders want to vote on Bitcoin purchase for the balance sheet at the Annual General Meeting in December, Bitcoin +59% since the beginning of the year

Qualcomm and ARM are in a license dispute over the Nuvia takeover, ARM +112% since the beginning of the year, Qualcomm +23% since the beginning of the year

Lockheed Martin with good quarterly figures, +24% since the beginning of the year

L3Harris with good quarterly figures, +24% since the beginning of the year

RTX (Raytheon) with good quarterly figures, sales and profit forecasts raised, +48% since the beginning of the year

UPS with good quarterly figures, -9% since the beginning of the year

Texas Instruments with good quarterly figures, +25% since the beginning of the year

Coca Cola with good quarterly figures, +15% since the beginning of the year

IBM with strong profit growth but disappointed sales, +36% since the beginning of the year

Munich RE Profit warning due to major losses, +24% since the beginning of the year

Starbucks has suspended its forecast for the coming financial year as new CEO Brian Niccol seeks to restructure the company but increases dividend, +5% year-to-date

Kering with profit warning as Gucci weakens in China, -40% since the beginning of the year

Enphase Energy with poor figures, share falls -12%, -37% since the beginning of the year

Traffic light government decides exit tax on ETF assets from €500,000, savings and independent investing are penalized even more, prosperity and freedom are made more difficult and hindered

Loopholes in the rent control for furnished apartments remain

" If you want to read a review like this every week, leave a like & subscribe here.

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23.10.2024

Arm revokes Qualcomm's architecture license + Exciting figures today + McDonald's falls after E. coli cases in the USA + Solar shares in free fall: Enphase Energy disappoints + Deutsche Bank's profits jump thanks to Postbank settlement

The legal dispute that has been simmering for two years between Arm $ARM (+0,32 %) and Qualcomm $QCOM (-0,02 %) has been escalated to a new level with the recent withdrawal of the architecture license by Arm. In essence, it is about the takeover of Nuvia and the implementation at Qualcomm derived from its CPU design as the Snapdragon X Elite.

https://www.computerbase.de/news/wirtschaft/rechtsstreit-nach-nuvia-uebernahme-arm-entzieht-qualcomm-die-architekturlizenz.90052/

The share price of McDonald's $MCD (+0,01 %) plummeted after the chain's restaurants in several US states were linked to an outbreak of E. coli bacteria. According to the CDC, one elderly person died and ten were hospitalized. A total of 49 cases have been reported in ten states, most of them in Colorado and Nebraska. The share price of the world's largest fast food chain fell by almost ten percent at times in early after-hours trading in the US on Tuesday. However, the stock was recently able to recover somewhat from this heavy loss and ended after-hours trading down six percent at around 296 dollars. However, McDonald's shares had also risen sharply in recent weeks, with the share price hitting another record high of almost 318 dollars on Monday. According to McDonald's, the trigger is suspected to be chopped onions, which are only used in the Quarter Pounder, the American equivalent of the Hamburger Royal. They came from a supplier that supplies three distribution centers. In five states and parts of seven others, the Quarter Pounder is now being temporarily withdrawn from supply.

Enphase Energy Inc. $ENPH (+0,79 %) generated net sales of USD 380.873 million in the third quarter of 2024 (previous quarter: USD 303.458 million), a decline of 30.9% compared to the previous year. The Californian solar inverter provider's negative revenue growth thus slowed further. In the previous quarter, this was still down 57.3% on the previous year (Q1 2024: down 63.7%, Q4 2023: down 58.2%, Q3: up 13.2%, Q2: up 34.1%, Q1: up 64%). Enphase Energy's gross margin in the same period was around 46.8% (previous quarter: 45.2%, previous year: 47.5%). The solar technology company's operating result fell to plus USD 49.788 million in the reporting period (previous quarter: USD 1.799 million, previous year: USD 117.989 million). This left the US company with a net result of USD 45.762 million (previous year: USD 113.953 million) or (diluted) earnings per share (US GAAP) of USD 0.33 (previous year: USD 0.80).

The back and forth in the legal dispute over Postbank $DPB-takeover has had a negative impact on Deutsche Bank $DBK (+0,29 %) Deutsche Bank's profits in the third quarter. Because the DAX-listed group was able to partially release a provision from the second quarter, shareholders received almost 1.5 billion euros on the bottom line. This was 42 percent more than a year earlier and more than analysts had expected on average. CEO Christian Sewing also considered buying back more shares when presenting the interim results on Wednesday. He expressed confidence that he would be able to distribute more capital to shareholders than originally planned. In the summer, Deutsche Bank still had worse news in store. Due to a provision of 1.3 billion euros in the Postbank legal dispute, it had even slipped into the red. However, following an agreement with the majority of the plaintiffs from among the former Postbank shareholders, it has now been able to release 440 million euros of this. The Management Board also reported positive developments in day-to-day business. CFO James von Moltke confirmed the target of generating income of 30 billion euros this year. The management also believes the bank is on track with its targets for 2025. Above all, the return on tangible equity should then reach more than 10 percent. In the third quarter, it was even slightly above this mark at 10.2 percent. Without the reversal of the provision, however, it would only have amounted to 7.6%.

Wednesday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Lowe's Companies 1.15 US

Quarterly figures / company dates USA / Asia

12:30 AT&T | GE Vernova quarterly figures

12:55 Coca-Cola quarterly figures

13:30 Boeing | General Dynamics quarterly figures

22:05 Tesla | Align Technology | Whirlpool quarterly figures

22:08 IBM quarterly figures

22:30 T-Mobile US quarterly figures

Untimed: Boeing union "International Association of Machinists and Aerospace Workers Union", vote on offer regarding wage increase

Quarterly figures / Company dates Europe

07:00 Deutsche Bank | DWS | Amadeus Fire | Akzo Nobel | Kühne & Nagel | Volvo Car quarterly figures | Roche 3Q sales

07:20 Air Liquide sales 3Q

07:30 Atoss Software 9 months results

08:00 Deutsche Bank PK | Lloyds Banking Quarterly Figures | Reckitt Benckiser | Heineken Trading Update 3Q

09:30 Iberdrola 9 months results

10:00 Flatexdegiro analyst conference on the quarterly figures

11:00 Deutsche Bank Analyst Conference

14:00 Deutsche Börse Analyst and Investor Conference on the quarterly figures

17:40 Michelin | Kering Sales 9 months

17:50 Carrefour 3Q sales

Untimed: Givaudan end of investor day (since 22.10.)

Economic data

08:00 DE: Leading indicator foreign trade on exports to non-EU countries | Turnover in the service sector

14:00 DE: Deutsche Börse analyst and investor conference on the quarterly figures

15:00 US: Fed Governor Bowman, speech at the Philadelphia Fed's Annual Fintech Conference | IMF Fiscal Monitor

16:00 EU: Eurozone Consumer Confidence Index (flash estimate) October FORECAST: -12.5 previous: -12.9

16:00 US: Existing Home Sales September FORECAST: -0.5% yoy previous: -2.5% yoy

16:30 US: Crude oil inventory data (week) from the Energy Information Administration (EIA)

20:00 US: Fed, Beige Book

Largest European tech stocks by market capitalization

SAP € 259 billion $SAP (+0,09 %)

ASML € 253 billion $ASML (-0,58 %)

ARM Holdings € 160 billion $ARM (+0,32 %)

NXP Semiconductors € 54 billion $NXPI (+0 %)

Dassault Systèmes € 44 billion $DSY (+0,2 %)

Infineon € 40 billion $IFX (+0,54 %)

Capgemini € 32 billion $CAP (+0,13 %)

ASM International € 26 billion $ASM (+0,63 %)

Ericsson € 26 billion $ERIC B (-0,67 %)

Hexagon € 23 billion $HEXA B (+0,14 %)

Nokia € 22 billion $NOKIA (+0,99 %)

STMicroelectronics € 22 billion $STM (+0,43 %)

Logitech € 12 billion $LOGN (+0,24 %)

Sage Group € 12 billion $SGE (+0,11 %)

>> Which ones are you invested in and how are they performing? Most of these European tech stocks can be found in the iShares MSCI Europe Information Technology - ETF, WKN: A2QBZ3

#halbleiter
#semiconductor
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Semiconductor shares since their 52-week highs

-61% Intel $INTC (+0,18 %)

-54% Aixtron $AIXA (+0,57 %)

-45% STMicroelectronics $STMPA (+0,32 %)

-44% Micron Technology $MU (+0,21 %)

-37% Globalfoundries $GFS (-0,01 %)

-36% BE Semiconductor $OXVE

-33% Lam Research $LRCX

-29% AMD $AMD (+0,02 %)

-29% Qualcomm $QCOM (-0,02 %)

-28% ON Semiconductor $ON (+0,19 %)

-27% ASML $ASML (-0,58 %)

-26% Applied Materials $AMAT (-0,2 %)

-26% Elmos Semiconductor $ELG (-0,81 %)

-24% Microchip Techn. $MCHP (-0,75 %)

-23% ARM $ARM (+0,32 %)

-23% Synopsys $SNPS (+0,82 %)

-23% Infineon $IFX (+0,54 %)

-22% NXP Semiconductors $NXPI (+0 %)

-20% Cadence Design $CDNS (-0,36 %)

-17% Nvidia $NVDA (-0,4 %)

-17% VanEck Semicon. ETF $IE00BMC38736 (-0,04 %)

-17% Nordic Semi $NRS

-17% KLA Corporation $KLAC (-0,21 %)

-13% Marvell Technology $MRVL (+0,12 %)

-12% TSMC $2330

-11% Broadcom $AVGO (+0,02 %)

-7% Texas Instruments $TXN (+0,22 %)

-6% Monolithic Power Syst. $MPWR (-1,12 %)

>> Which stocks are you invested in and how are they performing? Which of these stocks do you have on your watchlist? #semiconductor
#halbleiter