Ambarella Earnings Announcement and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Earnings Announcement: Ambarella (AMBA) is set to release its earnings report on May 28th after market close, with consensus EPS estimate at $0.75 and revenue estimate at $440.61 million, indicating positive market expectations for its performance.
- Consistent Outperformance: Over the past two years, Ambarella has beaten both EPS and revenue estimates 100% of the time, demonstrating sustained strength in profitability and market performance, which enhances investor confidence.
- Upward Revision Trend: In the last three months, EPS estimates have seen 12 upward revisions with no downward adjustments, while revenue estimates experienced 12 upward revisions and one downward, reflecting analysts' optimistic outlook on the company's future growth.
- Growth Target Setting: Ambarella targets a revenue growth of 10%-15% by fiscal 2027, primarily driven by the rapid adoption of edge AI, showcasing the company's growth potential in the industrial robotics sector.
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Analyst Views on AMBA
Wall Street analysts forecast AMBA stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 91.840
Low
80.00
Averages
96.70
High
115.00
Current: 91.840
Low
80.00
Averages
96.70
High
115.00
About AMBA
Ambarella, Inc. is a developer of low-power system-on-a-chip (SoC) semiconductors and software for edge artificial intelligence (AI) applications. The Company's technologies make electronic systems smarter, enabling them to become partially or fully autonomous with features, such as person detection, object classification, and analytics, in addition to performing complex data analysis in real time, delivering imagery, and preserving vital system resources, such as power and network bandwidth. It specializes in the development of deployable, scalable designs for intelligent electronic systems that utilize high-bandwidth sensors. Its products are used in a variety of human viewing, computer vision and edge AI applications, including a variety of automotive camera systems, video security cameras, mobile and fixed robots, industrial applications, and consumer devices, such as action, drone, and 360-degree cameras.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Earnings Report: Ambarella's Q1 FY2027 adjusted EPS of $0.11 surpassed the $0.10 consensus estimate, indicating robust performance in the low-power system-on-chip sector.
- Revenue Growth: The company reported a 17% year-over-year revenue increase to $100.4 million, slightly above the $100.15 million estimate, reflecting its sustained leadership in edge AI platforms.
- Optimistic Outlook: For Q2, Ambarella expects revenue between $105 million and $111 million, with a midpoint of $108 million, exceeding the $107 million consensus, showcasing strong market demand.
- Strategic Partnership: The long-term partnership with South Korea's Hanwha is projected to generate over $800 million in potential revenue, further solidifying Ambarella's position in intelligent vision solutions and AI technologies.
See More
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- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
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See More
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- Strong Revenue Performance: Ambarella Inc. reported revenue of $100.4 million for the quarter, slightly above the midpoint of prior guidance, despite a 0.5% sequential decline, reflecting a robust 16.9% year-over-year growth driven by strong automotive segment performance.
- Stable Gross Margin: The non-GAAP gross margin stood at 59.9%, slightly exceeding the midpoint of the guidance range of 59% to 60.5%, indicating effective cost management and profitability, which enhances market confidence in the company's operational efficiency.
- Long-Term Agreement Signed: Ambarella announced a significant long-term agreement with Hanhwa, potentially generating over $800 million in revenue over the next decade, which strategically strengthens its position as a leader in the AI technology market.
- Cash Flow Challenges: Despite strong revenue and gross margin performance, the company reported a free cash outflow of $29.6 million for the quarter, indicating cash management challenges that could impact future investment capabilities.
See More
Ambarella Q1 Fiscal 2027 Earnings Highlights
- Revenue Growth: Ambarella reported Q1 revenue of $100.4 million, slightly above the prior guidance midpoint of $97 million to $103 million, reflecting a 16.9% year-over-year increase and demonstrating the company's stable market performance.
- Long-Term Agreement: The company signed a long-term agreement with South Korea's Hanwha, expected to generate over $800 million in potential revenue over more than 10 years, which will provide a more predictable revenue stream and enhance market competitiveness.
- Automotive Business Innovation: Ambarella's automotive revenue reached an all-time high, driven by the rapid emergence of AI in the commercial vehicle telematics market and automotive safety applications, showcasing the company's strong performance in this fast-growing sector.
- Future Outlook: Management forecasts Q2 revenue in the range of $105 million to $111 million, with non-GAAP gross margins between 59% and 60.5%, while maintaining a growth expectation of 10% to 15% for the full year despite supply chain challenges.
See More
Ambarella (AMBA) Q1 2027 Earnings Transcript
See More
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- Dell Technologies Guidance Upgrade: Dell raised its full-year adjusted earnings per share forecast to $17.90, with revenue expected between $165 billion and $169 billion, significantly surpassing analyst expectations of $13.09 per share and $142.5 billion in revenue, resulting in a 30% surge in stock price.
- American Eagle Outfitters Sales Decline: American Eagle reported a 2% drop in comparable sales for Q1, missing the 3.1% growth forecast by analysts, and provided disappointing Q2 operating income guidance of $45 million to $50 million, below the $65.3 million consensus, leading to an approximately 11% decline in stock price.
- Gap Sales Outlook Downgrade: Gap lowered its full-year sales growth forecast to between 1% and 2%, down from 2% to 3%, with Q1 revenue of $3.50 billion falling short of the $3.52 billion expected by analysts, causing a 13% drop in stock price.
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