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Ambarella (AMBA) Beats on Earnings, Stock Slips on Weak Guidance

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Ambarella, Inc. AMBA reported Q3 earnings of 87 cents this afternoon, beating the Zacks Consensus Estimate by 16 cents. However, shares of AMBA are falling in after-hours trading after the company lowered its guidance for Q4.

Ambarella is a developer of video compression and image processing semiconductors. AMBA's products are used in still cameras, camcorders, and mobile phones. The company sells its products directly to manufacturers, including the popular GoPro GPRO action camera brand.

Currently, AMBA has a Zacks Rank #4 (Sell), although the ranking could change following today's announcement. Here are some of the key metrics from AMBA's latest earnings report:

Earnings: AMBA posted earnings of $0.87 (note: this figure is before non-recurring items and takes out stock options expenses). This beat the Zacks Consensus Estimate of $0.71.

Revenue: Ambarella reported revenues of $93 million, which beat our consensus estimate of $91 million.

Key Stats to Note: Ambarella guided for Q4 revenue of $65 to $67.5 million, which fell short of $76 million some analysts were expecting. Gross margin is expected to be between 63.0 and 64.5 percent, versus 65.7 percent reported in Q3.

Stock Price: AMBA closed down about 4.3% today. In after-hours trading, shares have slipped an additional 2.8%.

Here is graph illustrating AMBA's recent earnings surprise history:

Ambarella Inc. (AMBA) - Quarterly EPS | FindTheCompany

Make sure to check back later for our full write up on Ambarella's latest earnings report!

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GOPRO INC-A (GPRO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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