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Ambarella (AMBA) Reports Narrower-Than-Expected Q1 Loss
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Ambarella (AMBA - Free Report) reported a first-quarter fiscal 2024 non-GAAP loss of 15 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 20 cents. However, the reported figure compared unfavorably with the year-ago quarter’s earnings of 44 cents per share.
First-quarter revenues declined 31% year over year to $62.1 million, mainly due to customer inventory reduction actions across its IoT end market. However, the top line was in line with the consensus mark.
Customer & Market Details
Ambarella had two 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 49% of the company’s revenues. Chicony, a Taiwan-based electronics manufacturer serving multiple IoT customers, represented 16% of Ambarella’s revenues.
The momentum of AMBA’s CV flow system-on-a-chip in professional IP cameras continued in the reported quarter. The company expects to achieve its targeted goal of generating 60% of total revenues from the CV portfolio in 2024.
The non-GAAP gross margin was 63.1%, down 70 basis points year over year in the fiscal first quarter.
On a non-GAAP basis, operating expenses were $46.2 million, up $200,000 sequentially. Non-GAAP operating expenses were lower than the company’s prior guidance in the band of $47-$49 million, mainly due to its expense management actions and the timing of spending between quarters.
Balance Sheet
As of Apr 30, 2023, Ambarella had cash and cash equivalents & marketable securities of $227.4 million compared with $206.9 million as of Jan 31, 2023.
Second-Quarter Guidance
For the second quarter of fiscal 2024, revenues are expected between $60 million and $64 million. The non-GAAP gross margin is anticipated at 62.5-64.5%.
Non-GAAP operating expenses are projected in the range of $48-$50 million.
Zacks Rank & Stocks to Consider
Ambarella currently carries a Zacks Rank #3 (Hold). Shares of AMBA have declined 0.4% year to date (YTD).
The Zacks Consensus Estimate for Meta's second-quarter 2023 earnings has been revised 18 cents northward to $2.87 per share in the past 30 days. For 2023, earnings estimates have been revised 2.4% upward to $12.04 per share in the past 30 days.
Meta’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on two occasions, the average surprise being 15.5%. Shares of META have surged 118.1% YTD.
The Zacks Consensus Estimate for Manhattan Associates' second-quarter 2023 earnings has been revised upward by a couple of cents to 72 cents per share for the past 60 days. For 2023, earnings estimates have moved upward by 17 cents to $2.87 per share in the past 60 days.
Manhattan Associates' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 33.6%. Shares of MANH have soared 47.5% YTD.
The Zacks Consensus Estimate for CrowdStrike’s first-quarter fiscal 2024 earnings has been revised a penny northward to 50 cents per share in the past 60 days. For fiscal 2024, earnings estimates have been increased to $2.30 per share from $2.26 60 days ago.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 24.4%. Shares of CRWD have rallied 50.6% YTD.
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Ambarella (AMBA) Reports Narrower-Than-Expected Q1 Loss
Ambarella (AMBA - Free Report) reported a first-quarter fiscal 2024 non-GAAP loss of 15 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 20 cents. However, the reported figure compared unfavorably with the year-ago quarter’s earnings of 44 cents per share.
First-quarter revenues declined 31% year over year to $62.1 million, mainly due to customer inventory reduction actions across its IoT end market. However, the top line was in line with the consensus mark.
Customer & Market Details
Ambarella had two 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 49% of the company’s revenues. Chicony, a Taiwan-based electronics manufacturer serving multiple IoT customers, represented 16% of Ambarella’s revenues.
The momentum of AMBA’s CV flow system-on-a-chip in professional IP cameras continued in the reported quarter. The company expects to achieve its targeted goal of generating 60% of total revenues from the CV portfolio in 2024.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote
Operating Details
The non-GAAP gross margin was 63.1%, down 70 basis points year over year in the fiscal first quarter.
On a non-GAAP basis, operating expenses were $46.2 million, up $200,000 sequentially. Non-GAAP operating expenses were lower than the company’s prior guidance in the band of $47-$49 million, mainly due to its expense management actions and the timing of spending between quarters.
Balance Sheet
As of Apr 30, 2023, Ambarella had cash and cash equivalents & marketable securities of $227.4 million compared with $206.9 million as of Jan 31, 2023.
Second-Quarter Guidance
For the second quarter of fiscal 2024, revenues are expected between $60 million and $64 million. The non-GAAP gross margin is anticipated at 62.5-64.5%.
Non-GAAP operating expenses are projected in the range of $48-$50 million.
Zacks Rank & Stocks to Consider
Ambarella currently carries a Zacks Rank #3 (Hold). Shares of AMBA have declined 0.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Meta Platforms (META - Free Report) , Manhattan Associates (MANH - Free Report) and CrowdStrike (CRWD - Free Report) . While Meta and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), CrowdStrike carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta's second-quarter 2023 earnings has been revised 18 cents northward to $2.87 per share in the past 30 days. For 2023, earnings estimates have been revised 2.4% upward to $12.04 per share in the past 30 days.
Meta’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on two occasions, the average surprise being 15.5%. Shares of META have surged 118.1% YTD.
The Zacks Consensus Estimate for Manhattan Associates' second-quarter 2023 earnings has been revised upward by a couple of cents to 72 cents per share for the past 60 days. For 2023, earnings estimates have moved upward by 17 cents to $2.87 per share in the past 60 days.
Manhattan Associates' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 33.6%. Shares of MANH have soared 47.5% YTD.
The Zacks Consensus Estimate for CrowdStrike’s first-quarter fiscal 2024 earnings has been revised a penny northward to 50 cents per share in the past 60 days. For fiscal 2024, earnings estimates have been increased to $2.30 per share from $2.26 60 days ago.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 24.4%. Shares of CRWD have rallied 50.6% YTD.