Analysts expect Arm Holdings to post a 17% year-on-year rise in earnings per share and nearly 15% revenue growth during the third quarter.

Shares of Arm Holdings Plc. (ARM) rose nearly 3% in morning trade on Tuesday ahead of the company’s third-quarter earnings on Wednesday.

According to Stocktwits data, the analyst consensus points to estimated earnings per share (EPS) of $0.34 on revenue of $944.54 million. This compares to an EPS of $0.29 and revenue of $824 million during the same period last year.

Analysts see Arm Holdings posting a 17% year-on-year rise in EPS and a nearly 15% growth in revenue during this period.

Over the past four reported quarters, Arm Holdings has posted consecutive beats in both EPS and revenue. During this period, the EPS surprise was an average of 17.6%, while the revenue beat was an average of 5.8%.

Analysts at Barclays underscored their bull thesis for Arm Holdings and other companies with their own proprietary serializer/deserializer technology, noting that the year 2025 will be defined as the artificial intelligence “have and have-nots,” according to TheFly.

The brokerage raised its price target for Arm Holdings stock to $155 from $145, giving it an ‘Overweight’ rating. After Tuesday’s surge, the semiconductor designer’s stock has already crossed Barclays' price target.

However, retail sentiment on Stocktwits pointed towards indecisiveness ahead of earnings, hovering in the ‘bearish’ (44/100) territory, declining from ‘neutral’ (48/100) a day ago. Message volume remained in the ‘normal’ (49/100) zone.

ARM sentiment and message volume February 4, 2025, as of 11:30 am ET | Source: Stocktwits

One user posted their bullish outlook on Arm stock ahead of Q3 results.

However, not everyone is sold on the positivity.

Arm Holdings’ share price has gained more than 45% over the past six months, more than twice as much as the Nasdaq 100 index.

Over the past year, the chip designer’s shares have more than doubled, rising by 119%, while the Nasdaq 100 index delivered returns of a shade over 22%.

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