This week in earnings: Arm shares jump on blockbuster results, Snap plunges

Investing.com — Here is your Pro Recap of the earnings reports you may have missed this week: Arm Holdings, Snap, Walt Disney , Uber, and Roblox.

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Arm's shares jump 47% following strong Q3

Arm Holdings' (NASDAQ:ARM) shares experienced a significant jump, soaring more than 47% on Thursday, following the company's announcement of its Q3 results and increased annual guidance. This beat was driven by a surge in demand for artificial intelligence, which significantly boosted the company's royalty and licensing revenue.

The company disclosed Q3 adjusted EPS of $0.29, with revenue reaching $824 million. These figures exceeded Wall Street's expectations, which were set at an EPS of $0.25 and revenue of $761.6M.

Looking ahead to Q4, Arm anticipates adjusted EPS to be between $0.28 and $0.32, with revenue projections ranging from $850M to $900M. Analysts’ estimates stood at $0.21 for EPS and at $778.5M for revenues.

For the full year, the company guided for adjusted EPS of $1.20 to $1.24 on revenue of $3.16 billion to $3.21 billion, up from a prior estimate for adjusted EPS of $1 to $1.10 on revenue between $2.96B to $3.08B.

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Snap plunges 34% following Q4 results

Snap (NYSE:SNAP) experienced a significant 34% drop in its shares on Wednesday following the company's Q4 earnings report, which fell short of revenue forecasts and predicted a larger-than-expected EBITDA loss for Q1.

In Q4, Snap posted an adjusted EPS of $0.08, down from $0.14 in the same period last year, yet surpassing analyst expectations of $0.064. The company's revenue for the quarter was $1.36B, marking a 4.7% increase year-over-year but failing to meet the anticipated $1.38B.

The social media platform reported having 414M daily active users (DAUs) during the quarter, a 10% increase from the previous year and slightly above the expected 411.59M. However, the average revenue per user (ARPU) decreased by 5.2% year-over-year to $3.29, missing the forecast of $3.33.

Looking into Q1, Snap anticipates revenues to be between $1.10B and $1.14B, compared to the analysts’ estimate of $1.11B. However, the company estimates its adjusted EBITDA loss to be significantly more severe than expected, ranging from $55M to $95M, compared to an anticipated loss of $32.7M.

Walt Disney gains following Q1 beat

Walt Disney (NYSE:DIS) shares surged by 11% on Thursday following the announcement of its impressive Q1 earnings, which exceeded expectations, along with a $3 billion share repurchase program and dividend hike.

The entertainment behemoth posted adjusted EPS of $1.22 and revenue of $23.55B, surpassing the EPS forecast of $1 and slightly missing the revenue expectation of $23.75B as estimated by Wall Street analysts.

Additionally, the announcement included details of a $3B share buyback and a significant increase in its quarterly dividend by 50%. Disney highlighted considerable cost savings achieved during the quarter, amounting to $500M, and confirmed its progress toward making its key streaming streaming business profitable by the forthcoming autumn.

These developments occur amidst Disney's ongoing battle with activist investors seeking board positions to implement strategic changes aimed at enhancing the company's stock value. Despite these challenges, Disney's CEO Bob Iger expressed a positive outlook in his statement, suggesting that the company has "turned the corner and entered a new era," reflecting a strong confidence in Disney's future trajectory.

Two more earnings beats

Uber Technologies (NYSE:UBER) released its Q4 earnings, posting an EPS of $0.66, which notably exceeded the analyst prediction of $0.16. The company's revenue for the quarter was reported at $9.94B, surpassing the consensus forecast of $9.76B.

For the upcoming Q1, Uber set its gross bookings forecast between $37B and $38.5B, compared to the analyst's expectation of $37.26B. Furthermore, the company's projected adjusted EBITDA for Q1 is between $1.26B and $1.34B, surpassing the anticipated $1.25B.

Roblox (NYSE:RBLX) experienced a surge of more than 10% in its shares on Wednesday, following the company's Q4 earnings that exceeded consensus forecasts.

Roblox announced a Q4 EPS of ($0.52), surpassing analyst predictions of ($0.55). The company's bookings for the quarter reached $1.13B, beating the consensus estimate of $1.07B.