AMBA Stock: Ambarella Delivers Mixed Fourth-Quarter Report

Ambarella (AMBA), a maker of chips for computer vision systems and video surveillance cameras, late Monday edged above expectations for earnings in its fiscal fourth quarter while sales matched views. But its revenue guidance for the current quarter came up short, as did its gross margin outlook. AMBA stock fell in extended trading.

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The Santa Clara, Calif.-based company earned an adjusted 45 cents a share on sales of $90.2 million in the quarter ended Jan. 31. Analysts had expected Ambarella earnings of 42 cents a share on sales of $90.2 million, according to FactSet. On a year-over-year basis, Ambarella earnings surged 221% while sales increased 45%.

For the current quarter, Ambarella expects revenue of $88.5 million to $91.5 million. The midpoint of $90 million is below Wall Street analyst estimates of $90.9 million.

Also, Ambarella expects an adjusted gross profit margin of 63% to 64% in its fiscal first quarter ending April 30. That’s down from 64.8% in the fourth quarter.

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. “Nevertheless, we believe we are now decisively established in front of the positive AIoT (Artificial Intelligence of Things) secular trends.”

In after-hours trading on the stock market today, AMBA stock tumbled 19.1%, near 113. During the regular session Monday, AMBA stock rose 0.2% to close at 139.71.

AMBA stock ranks No. 13 out of 30 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 86 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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