Goldman Picks New Leaders for Japan Capital Markets Business
The Wall Street firm's local securities arm has appointed Yojiro Kunitomo and Yusuke Minowa as capital solutions group co-heads, according to an internal memo seen by Bloomberg News and confirmed by a spokeswoman.
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Yahoo
2 minutes ago
- Yahoo
Arm AI Ambitions Grow, But Analysts Warn Of Margin Trouble Ahead
Arm Holdings (NASDAQ:ARM) underwhelmed with its latest quarterly results, prompting Wall Street analysts to revise their ratings on the chip designer. The company reported fiscal first-quarter revenue of $1.053 billion, up 12% year-over-year. It missed analyst estimates of $1.055 billion. Arm reported first-quarter adjusted earnings of 35 cents per share, which is in line with analyst estimates. Also Read: Arm expects second-quarter revenue of $1.01 billion to $1.11 billion, compared to estimates of $1.056 billion. The company anticipates second-quarter adjusted earnings of 29 cents to 37 cents per share, compared to estimates of 35 cents per share. Analyst Reaction Needham analyst Charles Shi reiterated a Hold rating for ARM. Rosenblatt analyst Kevin Cassidy maintained a Buy rating and a $180 price forecast for ARM. Goldman Sachs analyst James Schneider reiterated ARM with a Neutral rating and reduced the price forecast from $160 to $150. JPMorgan analyst Harlan Sur maintained a rating of Overweight for ARM and increased the price forecast from $150 to $175. Needham: Shi sees Arm's first-quarter results and second-quarter guidance as primarily in line with expectations. While full-year revenue expectations remain unchanged, guidance now suggests a weaker third quarter and stronger fourth quarter. Licensing revenue, Shi says, offsets softer royalties due to weak smartphone trends. Arm is transitioning from a pure IP licensing model to a product-centric approach, likely involving chiplet or full-chip development. This shift, driven partly by expanded design services revenue from SoftBank, pushes operating expenses higher—raising fiscal 2026 OpEx by around $100 million. Shi believes this transformation could pressure earnings soon, even as it signals a bold strategic pivot with long-term implications. Rosenblatt: Cassidy views Arm's first-quarter fiscal 2026 results as roughly in line with expectations, though earnings guidance came in slightly below consensus due to increased R&D spending, primarily to support its growing relationship with SoftBank. Cassidy remains optimistic that this investment will yield a positive return, particularly in AI data center applications. He highlights the strong momentum of Arm's Compute Subsystem (CSS), which helps customers bring AI-enabled products to market faster and supports higher royalty rates. First-quarter revenue of $1.053 billion, driven by a 25% year-over-year rise in royalties, slightly exceeded forecasts. While license revenue dipped 1%, this was expected due to timing shifts. Cassidy forecasted continued growth from AI, hyperscaler deployments, and Arm's expanding product partnerships. Goldman Sachs: Schneider sees Arm's latest quarterly results as primarily in line with expectations, but believes the stock may face near-term pressure. While revenue and EPS matched Street estimates, royalty revenue came in below forecast, and management's updated guidance pointed to slower royalty growth and elevated operating expenses. Schneider notes that expectations were high going into the report, driven by optimism around AI deployments and smartphone recovery. However, lower visibility in smartphone demand and deferral of royalty recognition have tempered the outlook. Arm is well-positioned for long-term gains in data centers and benefits from increasing royalty rates. Still, Schneider remains Neutral on the stock. He cut his EPS estimates by 6% and lowered his price forecast, citing limited near-term upside and high valuation. JPMorgan: Arm's fiscal first-quarter 2026 results as in line with expectations. Substantial licensing revenue helped offset weaker royalties tied to soft smartphone demand. For the September quarter, Arm guided revenue of $1.06 billion—matching consensus—but EPS guidance of 33 cents missed expectations due to higher operating expenses. While full-year revenue expectations remain unchanged, management now expects royalty growth to come in at the low end of its prior 10–15% range. Sur remains impressed by Arm's success with its Compute Subsystem (CSS) architecture, which generates royalty rates above 10%, but expresses concern over the company's push into full chip development. He warns this could erode margins and potentially alienate key customers. Price Action: ARM stock is down by 13.8% at $140.78 at the last check on Thursday. Read Next:Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Arm AI Ambitions Grow, But Analysts Warn Of Margin Trouble Ahead originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Bloomberg
4 minutes ago
- Bloomberg
CSX Is Said to Work With Goldman Sachs to Explore Options
By , Kiel Porter, and Liana Baker Save CSX Corp. is working with Goldman Sachs Group Inc., people familiar with the matter said, as the company explores options to participate in rail consolidation after two major rivals announced a merger. The Jacksonville, Florida-based freight operator has spoken with the Wall Street bank about the merits of a merger, according to the people, who asked not to be identified discussing confidential information. Considerations may not lead to any transaction, the people said.
Washington Post
4 minutes ago
- Washington Post
Dozens of countries with no deals face higher tariffs as trade deadline nears
WASHINGTON — Numerous countries around the world are facing the prospect of much higher duties on their exports to the United States on Friday, a potential blow to the global economy, because they haven't yet reached a trade deal with the Trump administration. Some of the United States' biggest trading partners have reached agreements , or at least the outlines of one, including the European Union , the United Kingdom , and Japan . Even so, those countries face much higher tariffs than were in effect before Trump took office. And other large trading partners — most notably China and Mexico — received an extension to keep negotiating and won't be hit with new duties Friday, but they will likely end up paying more. President Donald Trump intends the duties to bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports. Trump argues that foreign exporters will pay the cost of the tariffs, but so far economists have found that most are being paid by U.S. companies. And measures of U.S. inflation have started to tick higher as prices of imported goods, such as furniture, appliances, and toys rise. For those countries without an agreement, they could face duties of as much as 50%, including on large economies such as Brazil, Canada, Taiwan, and India. Many smaller countries are also on track to pay more, including South Africa, Sri Lanka, Bangladesh, and even tiny Lesotho . The duties originated from Trump's April 2 'Liberation Day' announcement that the United States would impose import taxes of up to 50% on nearly 60 countries and economies, including the 27-nation European Union. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1. As of Thursday afternoon, White House representatives — and Trump himself — insisted that no more delays were possible. White House press secretary Karoline Leavitt said Thursday that Trump 'at some point this afternoon or later this evening' will sign an order to impose new tariff rates starting midnight on Friday. Countries that have not received a prior letter on tariffs from Trump or negotiated a trade framework will be notified of their likely tariff rates, Leavitt said, either in the form of a letter or Trump's executive order. At least two dozen countries were sent letters setting out their tariff rates. On Wednesday, Trump said on his social media platform Truth Social, 'THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED.' In a flurry of last minute deal-making, the Trump has been announcing agreements as late as Thursday, but they are largely short on details. On Thursday, the U.S. and Pakistan reached a trade agreement expected to allow Washington to help develop Pakistan's largely untapped oil reserves and lower tariffs for the South Asian country. And on Wednesday, Trump announced a deal with South Korea that would impose 15% tariffs on goods from that country. That is below the 25% duties that Trump threatened in April. Agreements have also been reached with the European Union, Pakistan , Indonesia, Vietnam, the Philippines , and the United Kingdom. The agreement with the Philippines barely reduced the tariff it will pay, from 20% to 19%. The exact number of countries facing higher duties isn't clear, but the majority of the 200 have not made a deal. Trump has already slapped large duties on Brazil and India even before the deadline was reached. In the case of Brazil, Trump signed an executive order late Wednesday imposing a 50% duty on imports, though he exempted several large categories, including aircraft, aluminum, and energy products. Trump is angry at Brazil's government because it is prosecuting its former president, Jair Bolsonaro, for attempting to overturn his election loss in 2022. Trump was indicted on a similar charge in 2023. While Trump has sought to justify the widespread tariffs as an effort to combat the United States' chronic trade deficits, the U.S. actually has a trade surplus with Brazil — meaning it sells more goods and services to Brazil than it buys from that country. Late Wednesday, Trump said that India would pay a 25% duty on all its exports, in part because it has continued to purchase oil from Russia. On Thursday, the White House said it had extended the deadline to reach a deal with Mexico for another 90 days, citing the complexity of the trade relationship, which is governed by the trade agreement Trump reached when he updated NAFTA in his first term. ___ AP Writers Josh Boak and Wyatte Grantham-Philipps contributed to this report.
