Courtesy of Benzinga.
Previewing Ambarella Inc (NASDAQ: AMBA)’s fourth-quarter results, Deutsche Bank said in a note released on Thursday the hyper-seasonality of the company’s demand patterns continues to leave it on the sidelines. That said, the firm is impressed with the company’s continued advances in technology and end-market applications.
Q4 Headline Numbers To Align With Street
Analysts Ross Seymore and Sidney Ho expects a likely in-line print for the fourth quarter as GoPro Inc (NASDAQ: GPRO) appears back on track. The analysts expect Ambarella’s fourth-quarter revenues to be at $87 million, above the $86 million Street view, with the upside attributed to better than expected growth in sports/wearables. The segment is expected to report a 20 percent sequential drop. Earnings per share are likely to match the Street estimate of $0.75, the analysts added.
Related Link: Ambarella Slowly Emerging From GoPro’s Shadow
Expected Q4 Performance By Other Segments
- IP Security: Down 8 percent sequentially.
- Drones: Down 15 percent sequentially on seasonal build patterns.
- Auto: 10 percent sequential drop.
Above-Consensus Q1 Guidance Likely
Deutsche Bank expects Ambarella to guide first-quarter revenues to $76 million, above the $71 million consensus estimate, and earnings per share to $0.58 versus the $0.48 Street estimate. Segment-wise break-up of expectations concerning the first quarter guidance are as follows:
- IP Security: Down 8 percent sequentially.
- Auto: Down 5 percent sequentially.
- Drones: Flat.
- Sports & Wearables: Down 25 percent sequentially, incorporating a conservative potential first half inventory burn estimate.
The company is scheduled to release its results after the market close Feb. 28.
Deutsche Bank maintains its Hold rating and $65 price target for the shares of the company.
At the time of writing, Ambarella was surging up 3.17 percent to $58.84.
Latest Ratings for AMBA
Date | Firm | Action | From | To |
---|---|---|---|---|
Nov 2016 | KeyBanc | Maintains | Overweight | |
Sep 2016 | Roth Capital | Initiates Coverage on | Buy | |
Aug 2016 | KeyBanc | Maintains | Overweight |
View More Analyst Ratings for AMBA
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