Arm’s customers include several major manufacturers such as Apple, Lenovo and Samsung. The company said that it was set to reort sales of £186.7 million, around four percent lower than analyst forecasts. The decline was caused primarily by a fall in processor royalties, which came in around nine percent lower than forecast, and were low even taking into account one-off adjustments. This news caused some analysts to view the company pessimistically, with Liberum issuing a sell rating for the company. Others, however, were slightly more positive, noting that while the first quarter results were poor, the later part of the year could be much more positive.
By the end of Wednesday’s trading session, the FTSE 100 was down by 7.02 points, sitting at 6674.74, while a similar scenario played out internationally, with Wall Street trading lower because of disappointing US data, and Germany’s main index slipping because of poor economic data coming out of China.
Mining companies in particular struggled on Wednesday. Antofgasta slipped by 48p after its shares went ex-dividend, and Rio Tinto dropped by 8p in the wake of poor Chinese figures. The biggest gainers of the day were drug companies, which were still riding high after the takeover talk from earlier in the week. AstraZeneca gained 82.5p, while Shire and GlaxoSmithKline also saw their share prices increase.