Is Ambarella stock a buy on a drop in price?
Shares of Ambarella are trading at 8.7 times sales, which is lower than their five-year average sales multiple. A drop in the company's stock price will make it more affordable, and that would present an opportunity to buy a fast-growing semiconductor specialist with impressive long-term potential on the cheap.
How did Ambarella's profits stack up in January?
For the three-month stretch ending in January, Ambarella turned $90.2 million worth of revenue into an operating profit of $0.45 per share. Both compare favorably to the year-ago figures of $62.1 million and $0.14 per share, and earnings topped analysts' expectations of $0.42 per share.
What is ambarella and how does it work?
Ambarella's chips are being used by the likes of Honda, Isuzu, Geely, and Dongfeng in their vehicles. Meanwhile, the company is gaining traction in the Internet of Things (IoT) market, where its chips are being used to power cameras for smart homes and other enterprise and public security applications.
Will supply chain challenges finally catch up with Ambarella?
Supply chain challenges finally caught up with Ambarella (AMBA -1.04%): Shares of the company whose chips power automotive and security cameras slipped 2% following the May 31 release of its fiscal 2023 first-quarter results (for the three months ending April 30, 2022).
See more
Is Ambarella stock a buy?
Ambarella has received a consensus rating of Buy. The company's average rating score is 2.75, and is based on 13 buy ratings, 2 hold ratings, and 1 sell rating.
Who are Ambarella competitors?
The main competitors of Ambarella include NVIDIA (NVDA), Broadcom (AVGO), Intel (INTC), Texas Instruments (TXN), Analog Devices (ADI), Micron Technology (MU), Marvell Technology (MRVL), Microchip Technology (MCHP), Monolithic Power Systems (MPWR), and Skyworks Solutions (SWKS).
Why AMBA stock is falling?
AMBA Stock Falls As CEO Cites Headwinds "We continue to face headwinds, including geopolitical, public health, and persistent supply chain challenges," Chief Executive Fermi Wang said in a news release.
Is AMBA stock a good buy?
Out of 13 analysts, 8 (61.54%) are recommending AMBA as a Strong Buy, 4 (30.77%) are recommending AMBA as a Buy, 1 (7.69%) are recommending AMBA as a Hold, 0 (0%) are recommending AMBA as a Sell, and 0 (0%) are recommending AMBA as a Strong Sell.
Who are ambarella customers?
Ambarella's major customers are Chicony, GoPro, Wintech, and Hakuto. Until 2018 GoPro and it's ODM's were amongst the biggest customers for Ambarella, after which they stopped buying from Ambarella. Wintech has always been the biggest customer with more than 60% of the company's revenue coming from them.
Where are Ambarella chips manufactured?
Manufacturing is outsourced Ambarella is hands off when it comes to manufacturing its SOCs. It outsources all aspects of the process including packaging and tests of the semiconductor devices to Global UniChip Corporation, located in Taiwan, and Signetics Corporation.
What does Ambarella do?
(Nasdaq: AMBA) is a fabless semiconductor design company, focusing on low-power, high-definition (HD) and Ultra HD video compression, image processing, and computer vision processors.
Ambarella Q3 Earnings and Revenues Beat Estimates
Customer & Market Details
Ambarella reported third-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which outpaced the Zacks Consensus Estimate by 16.3%. The reported figure jumped over six-fold from the prior-year quarter’s earnings of 9 cents per share.
Operating Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan, which serves multiple customers in Asia, accounted for 63% of the company’s revenues. Chicony, a Taiwanese original equipment manufacturer, which manufactures for multiple customers, contributed 13%.
What happened
Non-GAAP gross margin was 63.1%, up 40 basis points (bps) year over year in the third quarter.
So what
Ambarella ( AMBA 0.51% ) shareholders endured more volatility over the past few trading days, with shares dropping 9% through trading on Thursday compared to no change in the broader market.
NASDAQ: AMBA
Ambarella didn't gave investors any reason to push shares lower this week. Instead, the maker of computer vision chip technology appeared to be caught up in wider market trends that have punished high-growth names in the tech industry.
Now what
The good news is that management's last earnings update indicated that the business is firing on all cylinders as of late October, with sales expanding and profit margins rising while the company capitalizes on the proliferation of video processing chips in areas like autonomous driving and video security.
Premium Investing Services
CEO Fermi Wang told investors in late November that supply chain shortages may temporarily throttle sales growth into early 2022, if Ambarella doesn't find a way to secure all the components it needs.
Ambarella Q3 Earnings and Revenues Beat Estimates
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
Customer & Market Details
Ambarella reported third-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which outpaced the Zacks Consensus Estimate by 16.3%. The reported figure jumped over six-fold from the prior-year quarter’s earnings of 9 cents per share.
Operating Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan, which serves multiple customers in Asia, accounted for 63% of the company’s revenues. Chicony, a Taiwanese original equipment manufacturer, which manufactures for multiple customers, contributed 13%.
Balance Sheet & Cash Flow
Non-GAAP gross margin was 63.1%, up 40 basis points (bps) year over year in the third quarter.
Guidance
As of Oct 31, 2021, Ambarella had cash and cash equivalents & marketable securities of $457.8 million compared with $449.2 million as of Jul 31, 2021.
Changes to the market environment have suddenly cast the camera technology outfit's potential in a less bullish light
For fourth-quarter fiscal 2022, revenues are expected between $88.5 million and $91.5 million. Non-GAAP gross margin is anticipated to be 63-64%. Non-GAAP operating expenses are projected to be $39-$41 million.
What happened
James Brumley is former stockbroker with a large Wall Street firm, and a former trading analyst for a small, options-based newsletter. After twenty years of professional experience in and around the market, his approach is one that combines fundamentals, sentiment, and common sense.
So what
Shares of digital camera technology company Ambarella ( NASDAQ:AMBA) ended Wednesday down to the tune of 19.3%, bringing the stock's two-day rout to a total of more than 23%. The broad market's weakness caused most of the damage, although Ambarella shares began the new week as well as the new trading year highly vulnerable to such a setback.
Now what
Don't look for a specific catalyst for the sell-off. You won't find one. Indeed, Ambarella's unveiling of a new artificial intelligence-powered image processor on Wednesday morning arguably should have prodded the stock upward again after Tuesday's lull.
Should You Buy Ambarella (AMBA) Ahead of Earnings?
The sharp sell-off isn't an indictment of the company's business, to be clear. Ambarella is shrugging off the impact of a global chip shortage, on pace to produce revenue growth of 49% this fiscal year, which should in turn generate per-share earnings of $1.57.
Arlo Technologies (ARLO) to Report Q4 Earnings: What to Expect?
Ambarella (AMBA) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
What's in the Offing for Ambarella (AMBA) in Q4 Earnings?
Arlo Technologies (ARLO) fourth-quarter results are likely to benefit from growing subscriber base.
