Ambarella Shares Up 9%, Upgraded at KeyBanc

Ambarella (NASDAQ:AMBA) reported its Q3 earnings, with a loss of $0.28 per share, which was less than the anticipated $0.39 loss per share forecasted by analysts. The company's revenue for the quarter was $50.6 million, slightly above the Street estimate of $50.01 million. Despite this positive outcome, it's important to note that the revenue represents a 39% decrease from the same period in the previous year.

However, Ambarella highlighted a positive development: their customers are making headway in reducing their inventory, which leads the company to anticipate a return to revenue growth in fiscal 2025. CEO Fermi Wang expressed commitment to the company's strategic R&D focus, particularly in the development of System on Chips (SoCs) and software aimed at more advanced AI inference tasks.

For the upcoming fourth quarter, Ambarella projects revenue to be in the range of $50 to $53 million, compared to the Street estimate of $50.35 million.

Ambarella (NASDAQ:AMBA) shares experienced a pre-market drop exceeding 20% today following the release of its Q2 financial results.

Despite Q2 earnings per share (EPS) of ($0.15) and revenue amounting to $62.1 million, which exceeded predicted consensus figures of ($0.21) and $62.02 million, respectively, the provided Q3 guidance fell short of expectations.

For the upcoming Q3/24, Ambarella anticipates revenue of around $50 million, with a variance of 4% in either direction, contrasting with the projected consensus of $67.6 million.

Ambarella (NASDAQ:AMBA) shares experienced a pre-market drop exceeding 20% today following the release of its Q2 financial results.

Despite Q2 earnings per share (EPS) of ($0.15) and revenue amounting to $62.1 million, which exceeded predicted consensus figures of ($0.21) and $62.02 million, respectively, the provided Q3 guidance fell short of expectations.

For the upcoming Q3/24, Ambarella anticipates revenue of around $50 million, with a variance of 4% in either direction, contrasting with the projected consensus of $67.6 million.

Ambarella (NASDAQ:AMBA) shares plunged more than 17% intra-day today after the company reported its Q1 earnings results, with a loss per share of $0.15, better than the Street estimate of a loss per share of $0.20. Revenue came in at $62.1 million, compared to the Street estimate of $61.99 million. As guided, Q1 sales declined 27% quarter-over-quarter and 31% year-over-year, as customers continue to reduce inventory in IoT as well as automotive segments.

Despite the beat, management anticipates Q2/24 revenue to be in the range of $60-$64 million, worse than the Street estimate of $67.17 million. The gross margin is seen at 62.5%-64.5%.

Ambarella (NASDAQ:AMBA) shares plunged more than 17% intra-day today after the company reported its Q1 earnings results, with a loss per share of $0.15, better than the Street estimate of a loss per share of $0.20. Revenue came in at $62.1 million, compared to the Street estimate of $61.99 million. As guided, Q1 sales declined 27% quarter-over-quarter and 31% year-over-year, as customers continue to reduce inventory in IoT as well as automotive segments.

Despite the beat, management anticipates Q2/24 revenue to be in the range of $60-$64 million, worse than the Street estimate of $67.17 million. The gross margin is seen at 62.5%-64.5%.

Deutsche Bank analysts provided their views on Ambarella, Inc. (NASDAQ:AMBA) ahead of its upcoming Q4 earnings announcement.

After a roughly in-line Q3 was followed by a softer Q4/Q1 guide, the analysts expect an approximately in-line report for Q4 revenues as any incremental gains from easing kitting constraints are offset by weaker macro and industry-specific headwinds which should only pick up steam heading into Q1.

According to the analysts, the company admirably remains committed to its long-term plans, and they believe the company positioned it well for the future with a landmark design win at Continental AG in addition to a win with Kodiak Robotics, their recently re-sized Auto funnel/backlog (now at $2.3 billion) and continued rollout/development of industry-leading tech (CV5 production ramping and CV3 sampling).

Despite admiring management's commitment to the long-term plans, the analysts believe the near-term weakness and lack of clarity surrounding revenue timing lead them to believe that much of the company's growth potential is reflected in the stock.

Deutsche Bank analysts provided their views on Ambarella, Inc. (NASDAQ:AMBA) ahead of its upcoming Q4 earnings announcement.

After a roughly in-line Q3 was followed by a softer Q4/Q1 guide, the analysts expect an approximately in-line report for Q4 revenues as any incremental gains from easing kitting constraints are offset by weaker macro and industry-specific headwinds which should only pick up steam heading into Q1.

According to the analysts, the company admirably remains committed to its long-term plans, and they believe the company positioned it well for the future with a landmark design win at Continental AG in addition to a win with Kodiak Robotics, their recently re-sized Auto funnel/backlog (now at $2.3 billion) and continued rollout/development of industry-leading tech (CV5 production ramping and CV3 sampling).

Despite admiring management's commitment to the long-term plans, the analysts believe the near-term weakness and lack of clarity surrounding revenue timing lead them to believe that much of the company's growth potential is reflected in the stock.