Ambarella Inc. (NASDAQ: AMBA) reported its fiscal second-quarter financial results on Tuesday after the markets closed. The company had $0.88 in earnings per share (EPS) on $84.2 million in revenue, compared to Thomson Reuters consensus estimates of $0.80 in EPS on $81.73 million in revenue.

The same period from the previous year had $0.37 in EPS on $46.97 million in revenue. On a year-over-year basis, revenue grew 79.3% to the current level, while EPS more than doubled.

Without any formal guidance, investors should consider this unfinished business.

On the books, the company had cash, equivalents and marketable securities totaling $239.8 million at the end of the fiscal second quarter, compared to $209.0 million at the end of the previous fiscal year.

Fermi Wang, president and CEO of Ambarella, commented on earnings:

We enjoyed a very strong second quarter, with a year-over-year revenue increase of 79.3 percent. Revenue from our existing wearable, IP security and automotive video recorder camera markets grew significantly in the quarter, and we saw solid growth from drones or flying cameras. We also closed on the purchase of VisLab S.r.l., which adds a strong development team as well as advanced intellectual property in computer vision technology. We look forward to continued success, as Ambarella enables the next generation of intelligent HD and Ultra HD cameras.

Ambarella has sold off by about 17% within the past month. The bulls might see this as a flush out and a potential buying opportunity for this stock. However, it is worth keeping in mind that this stock has run nearly 180% since this time last year, and more bearish investors could see the stock giving more back.

Recent analyst calls have the stock moving up from its current level:

• Deutsche Bank reiterated a Hold rating with a $100 price target.
• Stifel reiterated a Buy rating with a $115 price target.
• Pacific Crest reiterated a Buy rating with a $123 price target.

Shares of Ambarella closed Tuesday down 6.3% at $89.61 in its 52-week trading range of $33.35 to $129.19. Following the release of the earnings report, shares were down 1.5% at $87.52 in the after-hours trading session. The stock has a consensus analyst price target of $105.45.

With strong earnings like this, imagine the reaction if the markets had had a better day on Tuesday.

ALSO READ: Drones Now Available From Apple Store

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