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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.
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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.