Street Earnings

Earnings Estimates Report: Ambarella, Inc. (NASDAQ:AMBA)

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Ambarella, Inc. (NASDAQ:AMBA) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $0.34 per share on revenue of $57.16M. Analysts had been modeling earning per share of $0.28 with $57.01M in revenue.

Ambarella, Inc. (NASDAQ:AMBA) announced financial results for its first quarter of fiscal year 2017 ended April 30, 2016.

  • Revenue for the first quarter of fiscal 2017 was $57.2 million, down 19.5% from $71.0 million in the same period in fiscal 2016.
  • Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2017 was 64.2%, compared with 64.7% for the same period in fiscal 2016.
  • GAAP net income for the first quarter of fiscal 2017 was $1.8 million, or $0.05 per diluted ordinary share, compared with GAAP net income of $18.9 million, or $0.56 per diluted ordinary share, for the same period in fiscal 2016.

Financial results on a non-GAAP basis for the first quarter of fiscal 2017 are as follows:

  • Gross margin on a non-GAAP basis for the first quarter of fiscal 2017 was 64.6%, compared with 64.8% for the same period in fiscal 2016.
  • Non-GAAP net income for the first quarter of fiscal 2017 was $11.4 million, or $0.34 per diluted ordinary share. This compares with non-GAAP net income of $23.7 million, or $0.71 per diluted ordinary share, for the same period in fiscal 2016.

Ambarella reports gross margin, net income and earnings per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information for the first fiscal quarter excludes the impact of stock-based compensation adjusted for the associated tax impact which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income and earnings per share numbers for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.

Stock Repurchase

Ambarella also announced that its Board of Directors has authorized the repurchase of up to $75 million of its ordinary shares over a six month period commencing in the second quarter of fiscal 2017. Repurchases under the program may be made from time-to-time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate the company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the company’s discretion. The repurchase program will be funded using Ambarella’s working capital and any repurchased shares will be available for general corporate purposes.

Ambarella, Inc. earnings per share showed an increasing trend of 44.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 290%.Analysts project EPS growth over the next 5 years at 14.5%. It has EPS annual growth over the past 5 fiscal years of 35.5% when sales grew 27.3. It reported -19.4% sales drop, and -90.7% EPS decline in the last quarter.

The stock is trading at $52.31, up 56.66% from 52-week low of $33.39. The stock trades down -59.51% from its peak of $129.19 and % below the consensus price target of $57.63. Its volume clocked up at 1.46 million shares which is higher than the average volume of 1.14 million shares. Its market capitalization currently stands at $1.69B.

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