Will Ambarella Earnings Keep Investors Happy?

Ambarella (NASDAQ: AMBA  ) will release its quarterly report on Thursday, and the company has found some pretty strong success since coming public less than a year ago. Yet even though the stock has more than doubled since then, Ambarella earnings have been providing healthy growth that have backed those gains with fundamental strength.

Ambarella is a technology leader in the high-definition video industry, with chips that combine features including video, image, and audio processing. Moreover, the company's products have some unique applications, including wearable sports cameras along with cameras for the automotive aftermarket. Let's take an early look at what's been happening with Ambarella over the past quarter and what we're likely to see in its report.

Stats on Ambarella

Analyst EPS Estimate

$0.19

Change From Year-Ago EPS

16.7%

Revenue Estimate

$35.99 million

Change From Year-Ago Revenue

29%

Earnings Beats in Past 4 Quarters

3*

Source: Yahoo! Finance. *In three quarters since IPO.

How far can Ambarella earnings climb this quarter?
Analysts haven't moved much on their views on Ambarella earnings in recent months, but the moves they have made have been positive, adding $0.02 per share to their projections for the current fiscal year. The stock hasn't held up as well, though, falling about 8% since late May.

Ambarella is far from a household name, but you'll find its offerings within products from better-known companies. For instance, Ambarella's HD video and image technology has found its way into leading products from companies like Samsung. Similarly, its low-power-consumption, high-performance infrastructure products have found their way into designs from original design manufacturer Plexus and other peers to end products from Google's Motorola Mobility, Ericsson (NASDAQ: ERIC  ) , and Harmonic (NASDAQ: HLIT  ) . Given the relative success of those providers, Ambarella has been able to deliver consistent results to shareholders during its brief life as a public company, beating analyst estimates in each of the three quarters for which it has released reports since its IPO.

Investors are far from unanimous in their views of Ambarella's future, however. With a substantial part of the company's revenue coming from a single original design manufacturer for use in wearable sports cameras, some point to a potential slowdown in that particular segment as signaling problems ahead for Ambarella. Yet others argue that temporary setbacks for the wearable-camera segment should give way to longer-term growth, and Ambarella is well-placed to benefit the most from that growth going forward.

One big growth avenue for Ambarella could come from the upsurge in surveillance technology. As security cameras and other surveillance devices become increasingly popular, Ambarella's chips should see higher revenue as a result.

In the Ambarella earnings report, watch to see what the company has to say about its upcoming presentations at some major conferences in San Francisco, Las Vegas, and New York. With the company getting more exposure all the time, Ambarella should start popping up on investors' screens in the near future if it can continue its streak of success.

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  • Report this Comment On September 05, 2013, at 12:53 AM, DZPM wrote:

    FCS is > God short sell candidate

    Fairchild Semiconductor International Inc.'s earnings have declined to an estimated $0.16 from $0.49 over the past 5 quarters; they have shown deceleration in quarterly growth rates when adjusted for the volatility of earnings. This is an indication of weakness that could lead to declining earnings.

    FCS seems highly valued with the highest PEG value in the Semiconductors & Semiconductor Equipment industry of 104.3551, which is supported by a PE of 521.7755 that is also the highest in the industry.

    The prior quarter Operating Margin of 1.50% is less than the TTM Operating Margin of 7.85%.

    Balance Sheet Strength: n The Long-Term Debt/Capital is 15.57%. This indication of financial leverage measures the extent of a firm’s capital that is provided by lenders. Below 25% reflects well on a company’s financial stability. The average LT Debt/Capital for this Industry Group (Electr. Semi.) is 11.21%. Growth Potential: n The prior quarter EPS of $-0.06 is less than the EPS of the year over year quarter of $0.02. n The prior quarter EPS growth rate of -400.00% is smaller than the TTM EPS growth rate of -41.97%. n The TTM EPS growth rate of -41.97% is less than the TTM Sales Per Share (SPS) growth rate of -0.08%. n Earnings Trend is Negative for the last three quarters on a year over year basis. FCS is nothing but a SELL

    Nothing new! Federal Reserve comity and Ben Bernanke “Giant Ponzi Scheme” .When we have bad economic data market is going up on speculation Fed Chairman Ben S. Bernanke will kip printing money. When we have god economic data market is going up speculation Bernanke is steel printing? This entire look like exuberance sign of market is in the crash mod and will burst 1000 down ward point any second. There is no exist without big consequences Bernanke know that and kip printing money we all American will go down to drain. Either way he will finish as slowly anyway. Bernanke ruin billions and billions of ordinary people’s lives with kipping interest zero in favor of Banks and Speculators Bernanke committed the biggest crime to humanity The Biggest Ponzi Scheme Ever. Bernanke is a Scam bag! Communist was using seam principals like Fed > Bernanke (printing money for ever), and day collapsed next is USA to Collapse, because off sociopath Bernanke. Printing money is poor pyramid scams, artificial unreal! Stock and everything is doom for crash. Every pyramid scam crash everybody loses regular investor watch out doesn’t fall in to the trap.

    A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens.

    That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.

    "I think we are heading for a worse economic crisis than we had in 2007," Schiff said. "You're going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it."

    Schiff says that, despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt and the Fed's never ending money printing.

    Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level.

    According to Schiff, these numbers are unsustainable. And the Fed has no credible "exit strategy."

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