Ambarella Earnings: Here’s Why the Stock is Rising Now

Ambarella (NASDAQ:AMBA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.78%.

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Ambarella Earnings Cheat Sheet

Revenue: Rose 30.79% to $33.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ambarella reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.15. It beat the average revenue estimate of $31.9 million.

Quoting Management: “We are very pleased with our progress in the first fiscal quarter, with total revenue up 31% over the first quarter of last year and with the successful addition of new customers in key markets,” said Fermi Wang, President and CEO of Ambarella. “During the quarter, we made excellent progress in the IP security camera market with new design wins at both professional and consumer IP-camera customers. We also saw especially strong revenue growth in the wearable sports camera category, led by market leader GoPro. In the automotive camera after-market, we continued to grow revenue while successfully expanding our customer base.”

Key Stats (on next page)…

Revenue increased 7.55% from $31.52 million in the previous quarter. EPS increased 16.67% from $0.18 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.20 and has not changed. For the current year, the average estimate has moved up from a profit of $0.80 to a profit of $0.83 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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