Arteris, Inc. (AIP) Reports Q2 Loss, Tops Revenue Estimates

Core Insights - Arteris, Inc. reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and an improvement from a loss of $0.13 per share a year ago, indicating a 26.67% earnings surprise [1] - The company generated revenues of $14.58 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 6.58%, although this represents a slight decline from $14.73 million in the same quarter last year [1] Financial Performance - The earnings surprise of 26.67% reflects the company's ability to exceed consensus EPS estimates three out of the last four quarters [1] - Arteris has also surpassed consensus revenue estimates in all four of the last quarters [1] Stock Performance - Arteris shares have increased by approximately 39.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.8% [2] Future Outlook - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing future stock movements [2][3] - Current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $14.4 million, and for the current fiscal year, it is -$0.52 on revenues of $56.25 million [4] Industry Context - The Internet - Software industry, to which Arteris belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [5] - Another company in the same industry, PagerDuty, is expected to report a quarterly earnings decline of 31.6% year-over-year, with revenues projected to be $116.65 million, up 8.4% from the previous year [5]