ARM Holdings Share Discussion Threads

[philanderer] 11/2/2016 09:39

ARM cash return silence disappoints investors

The failure of micro-chip maker ARM (ARM) to return cash to investors may be disappointing.

Liberum analyst Eoin Lambe retained his ‘sell’ recommendation and target price of 650p following fourth quarter results. Shares in ARM fell 2% to 921p yesterday.

‘Q4 2015 earnings before interest and tax is 4% below consensus excluding a one-off $9 million royalty catch-up payment,’ he said.

‘There is no announcement on cash returns, which may disappoint some. ARM’s outlook statement appears cautious and we would expect consensus revenue estimates to nudge down.

‘Operational expenditure for full-year 2016 is also expected to be higher than forecasts – c.$522 million versus consensus at $500 million. Investors tend to focus on ARM’s royalty revenue and the underlying miss may dampen sentiment.’

[philanderer] 11/2/2016 09:37

11 Feb 16 JP Morgan Cazenove Neutral tp 950p
11 Feb 16 Barclays Overweight tp 1250p
11 Feb 16 Deutsche hold tp 1000p
11 Feb 16 Beaufort Secs Buy -

retentions

[philanderer] 11/2/2016 09:17

Shares in Britain’s largest technology group are 5.5 per cent lower in early trading today, a day after they dropped 4.4 per cent following the company’s warning about the growth of the smartphone sector.

On Wednesday the company reported rising profits and sales, but missed some expectations in its fourth quarter and noted caution over the outlook for the semiconductor sector.

Sales of high-end smartphones are slowing, putting pressure on companies in the supply chain of handset makers.

At the same time, there is an increasing demand for chips to be used in connected devices. This requires the technology produced to be smaller and cheaper, further squeezing returns.

[philanderer] 11/2/2016 08:41

Sure looks like that word recession can be safely used now.

800p support rattling towards us.

[philanderer] 10/2/2016 20:47

Relentless dumping stateside , looking like a 9% loss , appx 865p

[philanderer] 10/2/2016 19:49

ARM Holdings plc (ADR) (ARMH) is Reiterated by The Benchmark Company to Buy, Lowers Price Target to $ 52


10 Feb 16 Investec Buy tp 1200p - reiterates

[philanderer] 10/2/2016 17:33

Still being sold off hard stateside ... just hit a 2 1/2 year low.

[philanderer] 10/2/2016 17:13

Hargreaves Lansdown

'ARM Final Results - Downturn? What downturn?'

[philanderer] 10/2/2016 16:52

In a report released today, Matt Ramsay from Canaccord Genuity reiterated a Buy rating on ARM Holdings (NASDAQ: ARMH), with a price target of $55

[sheep_herder] 10/2/2016 16:06

This article is useful to understand some of what ARM are trying to do in IoT.



I don't think anyone else has a licensable sub-1V radio that is plug and play. Combine this with mbed and all the recent security acquisitions and you start to have a great strategy around simplify market entry for the masses.

[lucas5950] 10/2/2016 14:51

Apple still cruising in the 90's and Arm getting beat down... LOL
Thanks for all the updates everyone.

[market sniper3] 10/2/2016 14:03

cheers phil, appreciated.

[philanderer] 10/2/2016 14:01

Looks like the yanks will take this under 900p this afternoon

[philanderer] 10/2/2016 13:41

Julian Yates at Investec said there was “no magic number” in ARM’s results that would propel the shares back up to 1200p, their peak reached just over a year ago, but said progress appeared to be good in the current climate.

The analyst added: “The commentary on the balance sheet suggests the company is not looking to return cash in an immediate timeframe, aside from the continuation of a small share buyback which could suggest [merger & acquisition] activity ahead.”

[market sniper3] 10/2/2016 11:58

no probs phil.

[philanderer] 10/2/2016 11:57

Thanks ms.

Here`s FT Alphaville`s own take..

BE
Arm down 2% at 921 at pixel.

BE
And the problem is "broadly"

BE
Increased economic uncertainty may influence consumer and enterprise spending, potentially impacting semiconductor revenues and industry confidence. Based on current conditions in the semiconductor market, we expect Group dollar revenues for the full year to be broadly in line with market expectations.

BE
"broadly in line" isn't in line.

BE
It's a euphemism used by companies that want the top end of the range to move towards the bottom end of the range.

BE
So, while there's nothing particularly bad in the Arm numbers, the unusually cautious guidance is the damper.

[market sniper3] 10/2/2016 11:55

Please feel free to transfer the notes, but dont feed the trolls , we seem to have picked up a couple of trolls, shauney and blue boy, just ignore them, we all have them on filter.

[market sniper3] 10/2/2016 11:52

ARM Full Broker notes here on the FAR9 thread..........

[philanderer] 10/2/2016 11:47

Analyst Mike Van Dulken at Accendo Markets said profits were a fraction ahead of consensus and growing faster than revenues.

"What's not to like? Maybe management's confidence in the semi-conductor industry is being questioned after Apple's warning on China stress and rival Imagination Technology's profits warning earlier this week," he suggested.

"Perhaps global recessionary fears are too much to discount given a mature and slowing high-end smartphone market starting to eat into margins and hopes too high that connected devices can ride to the rescue. The tech sector as a whole has also suffered since early February as investors caution about a murky US economic picture and divergent monetary policy, and sentiment having worsened sharply this week."

[stevenrevell] 10/2/2016 11:30

Cisco results tonight that will decide tomorrow's sp

[sheep_herder] 10/2/2016 10:07

raysor, easier to work out who ARM doesn't supply. :)

[lucas5950] 10/2/2016 10:04

Tonio: great buy at 891 mate! Arm is recovering from the open drop. Let's hope it sustains and continues up.

[market sniper3] 10/2/2016 10:01

ARM.........