What happened
Ambarella's (AMBA 3.29%) share price spiked by a staggering 30% this week as of Thursday's close after the company reported revenue and earnings for its fiscal second quarter that were far better than Wall Street had expected.
So what
The tech company, which develops semiconductors for HD video compression and image processing, reported non-GAAP earnings of $0.35 per share, a massive jump from the $0.06 per share it earned in the year-ago quarter, and well above analysts' consensus estimate of $0.25 per share. For the period, which ended July 31, Ambarella's revenue rose by an impressive 58% to $79.3 million, topping Wall Street's expectation of $75.7 million.
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"While the significant industry wide supply chain challenges persist, we expect F2022 to represent a major inflection in our business, and we are excited about our future," CEO Fermi Wang said in a press release.
Now what
In addition to the company's impressive fiscal second-quarter results, investors were likely also happy with Ambarella's guidance, which predicts more growth in the third quarter. Management expects revenue for its fiscal Q3 to be in the $88 million to $92 million range, which at the midpoint would be a 56% year-over-year increase.
Given the company's strong fiscal second-quarter results and management's optimistic outlook, it's no surprise that investors were driving Ambarella's share price higher this week.
