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What's in the Cards for Ambarella (AMBA) in Q2 Earnings?

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Ambarella, Inc. (AMBA - Free Report) is slated to release second-quarter fiscal 2021 results on Sep 2.

For the fiscal second quarter, the company estimates revenues of $50 million (+/-6%). The Zacks Consensus Estimate for the same is pegged at $50.1 million, indicating an 11.3% year-over-year decline.

For the bottom line, the consensus mark stands at a loss of 2 cents. In the year-ago quarter, the company had reported earnings per share of 21 cents.

In the last reported quarter, the company’s non-GAAP earnings per share were 4 cents, reflecting significant improvement from the year-ago quarter’s break-even earnings. Further, revenues increased 16% year over year to $54.6 million

Let’s see how things have shaped up for this announcement.

Factors at Play

Business disruptions in China and non-China regions amid the coronavirus-induced global lockdown are expected to have hurt fiscal second-quarter performance. During the first quarter of fiscal 2021, the company had witnessed some order push as well as cancellations due to the coronavirus-led business disruptions.

Moreover, softness in the automotive camera market is likely to have negatively impacted Ambarella’s overall revenue performance in the quarter.

Nonetheless, Ambarella’s quarterly results are expected to reflect strong design wins and customer engagement with its AI-enabled video-processing chips in the consumer security camera. The company is gaining from solid momentum in CV2, CV22 and CV25. Notably, in fiscal 2020, these products generated production revenues from 1,000 customers.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Ambarella this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Ambarella currently carries a Zacks Rank of 3 and has an Earnings ESP of -4.93%.

Stocks With the Favorable Combination

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Zscaler (ZS - Free Report) has an Earnings ESP of +21.74% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.67% and carries a Zacks Rank of 2, at present.

AutoZone (AZO - Free Report) has an Earnings ESP of +5.62% and carries a Zacks Rank of 3, currently.

5 Stocks Set to Double

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In-Depth Zacks Research for the Tickers Above


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Campbell Soup Company (CPB) - free report >>

AutoZone, Inc. (AZO) - free report >>

Ambarella, Inc. (AMBA) - free report >>

Zscaler, Inc. (ZS) - free report >>