We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ambarella (AMBA - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 44 cents per share, outpacing the Zacks Consensus Estimate of a loss of 20 cents per share. The reported figure soared 91.3% from the prior-year quarter’s earnings of 23 cents per share.
Revenues surged 29% year over year to $90.3 million and narrowly surpassed the consensus mark of $90 million. The robust year-over-year top-line growth was primarily driven by an improvement in the automotive and security camera businesses.
Customer & Market Details
Ambarella had three customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 57% of the company’s revenues. Hakuto, a Japanese distributor for automotive customers, contributed 10%, while Chicony, a Taiwan-based electronics manufacturer serving multiple IOT customers, represented 11% of the company’s revenues.
The momentum in AMBA’s CV flow system-on-a-chip in professional IP cameras across all geographies continued in the reported quarter.
Operating Details
The non-GAAP gross margin was 63.8%, up 90 basis points year over year in the fiscal first quarter.
A healthy customer and product mix, supported by stable price movements, aided the gross-margin expansion in the quarter reported.
On a non-GAAP basis, operating expenses were $39.8 million, down 1.2% sequentially. Non-GAAP operating expenses were slightly lower than the midpoint of the company’s prior guidance, mainly driven by the timing of new product development activities.
Net inventory was $41.5 million as of Apr 30, 2022, down 8.2% sequentially.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Ambarella had cash and cash equivalents & marketable securities of $200.6 million compared with $171 million as of Jan 31, 2022.
In the fiscal first quarter, the company generated operating cash flow of $34 million.
Guidance
For the second quarter of fiscal 2023, revenues are expected between $78 million and $82 million. The non-GAAP gross margin is anticipated at 63-64%.
Non-GAAP operating expenses are projected in the range of $42-$45 million.
Management noted that supply-chain constraints would continue to remain a concern in the second quarter of fiscal 2023.
Zacks Rank & Key Picks
Ambarella currently carries a Zacks Rank #4 (Sell). Shares of AMBA have declined 15.8% in the past year.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have rallied 9.3% in the past year.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised 5 cents upward to $2.42 per share over the past seven days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 2.8% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past 30 days. For 2022, The Zacks Consensus Estimate for Axcelis' earnings has moved 41 cents north to $4.40 per share in the past 30 days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have jumped 48.9% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Ambarella (AMBA) Q1 Earnings & Revenues Beat Estimates
Ambarella (AMBA - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 44 cents per share, outpacing the Zacks Consensus Estimate of a loss of 20 cents per share. The reported figure soared 91.3% from the prior-year quarter’s earnings of 23 cents per share.
Revenues surged 29% year over year to $90.3 million and narrowly surpassed the consensus mark of $90 million. The robust year-over-year top-line growth was primarily driven by an improvement in the automotive and security camera businesses.
Customer & Market Details
Ambarella had three customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 57% of the company’s revenues. Hakuto, a Japanese distributor for automotive customers, contributed 10%, while Chicony, a Taiwan-based electronics manufacturer serving multiple IOT customers, represented 11% of the company’s revenues.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote
The momentum in AMBA’s CV flow system-on-a-chip in professional IP cameras across all geographies continued in the reported quarter.
Operating Details
The non-GAAP gross margin was 63.8%, up 90 basis points year over year in the fiscal first quarter.
A healthy customer and product mix, supported by stable price movements, aided the gross-margin expansion in the quarter reported.
On a non-GAAP basis, operating expenses were $39.8 million, down 1.2% sequentially. Non-GAAP operating expenses were slightly lower than the midpoint of the company’s prior guidance, mainly driven by the timing of new product development activities.
Net inventory was $41.5 million as of Apr 30, 2022, down 8.2% sequentially.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Ambarella had cash and cash equivalents & marketable securities of $200.6 million compared with $171 million as of Jan 31, 2022.
In the fiscal first quarter, the company generated operating cash flow of $34 million.
Guidance
For the second quarter of fiscal 2023, revenues are expected between $78 million and $82 million. The non-GAAP gross margin is anticipated at 63-64%.
Non-GAAP operating expenses are projected in the range of $42-$45 million.
Management noted that supply-chain constraints would continue to remain a concern in the second quarter of fiscal 2023.
Zacks Rank & Key Picks
Ambarella currently carries a Zacks Rank #4 (Sell). Shares of AMBA have declined 15.8% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) . While Avnet and Analog Devices each sport a Zacks Rank #1 (Strong Buy), Axcelis carries a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have rallied 9.3% in the past year.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised 5 cents upward to $2.42 per share over the past seven days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 2.8% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past 30 days. For 2022, The Zacks Consensus Estimate for Axcelis' earnings has moved 41 cents north to $4.40 per share in the past 30 days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have jumped 48.9% in the past year.