What to Expect From Ambarella Earnings

By Chris Lange Updated Mar 13, 10:06PM EDT · Published Mar 3, 9:50AM EST

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What to Expect From Ambarella Earnings — © Thinkstock

Ambarella Inc. (NASDAQ: AMBA) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $0.48 in earnings per share (EPS) on $65.83 million in revenue. In the same period of last year, it posted EPS of $0.68 and $64.70 million in revenue.

This company took a tumble when GoPro Inc. (NASDAQ: GPRO) reported its earnings just last month. At that time GoPro shares were halted for the release of its report, and they even dropped more than 10%. However, over the course of February, GoPro made a solid recovery from this earnings dip.

Ambarella dropped about 5% on this GoPro news alone, as these companies have a trading history correlation.

Despite Ambarella posting a strong third quarter in December, its outlook was not that hot and shares were punished. At this point we have to keep in mind that Ambarella is a cult stock, and in this case the outlook is more important than the actual numbers for the current quarter.

Near-term headwinds may be a problem for this company when it reports, as we saw in GoPro’s report, as well as what Ambarella predicted in its own report. However keep in mind that the stock and analysts alike have adjusted for the outlook already and anything could go in this report.
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A few analysts weighed in on Ambarella ahead of its earnings report:

Pacific Crest reiterated an Overweight rating with a $72 price target.
Stifel reiterated a Buy rating.
Deutsche Bank has a Hold rating and lowered its price target to $50 from $60.
Canaccord Genuity reiterated a Buy rating but lowered its price target to $65 from $90.

So far in 2016, Ambarella has greatly underperformed the broad markets, with the stock down nearly 19% year to date. Over the past 52 weeks, the numbers get slightly worse with the stock down 28%.

Shares of Ambarella were trading down 1% at $44.82 on Thursday. The stock has a consensus analyst price target of $65.55 and a 52-week trading range of $33.39 to $129.19.

GoPro shares were trading up 0.8% at $13.12, within a 52-week range of $9.01 to $65.49. The consensus price target is $12.86.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.