A Look Ahead: Ambarella's Earnings Forecast

Ambarella AMBA is gearing up to announce its quarterly earnings on Tuesday, 2024-11-26. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Ambarella will report an earnings per share (EPS) of $0.04.

The market awaits Ambarella's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

Last quarter the company beat EPS by $0.06, which was followed by a 10.63% increase in the share price the next day.

Here's a look at Ambarella's past performance and the resulting price change:

Market Performance of Ambarella's Stock

Shares of Ambarella were trading at $63.62 as of November 22. Over the last 52-week period, shares are up 19.48%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Ambarella

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Ambarella.

The consensus rating for Ambarella is Buy, derived from 9 analyst ratings. An average one-year price target of $75.0 implies a potential 17.89% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Diodes, Synaptics and Silicon Laboratories, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Diodes is maintaining an Buy status according to analysts, with an average 1-year price target of $68.5, indicating a potential 7.67% upside.
• Analysts currently favor an Buy trajectory for Synaptics, with an average 1-year price target of $101.75, suggesting a potential 59.93% upside.
• The consensus outlook from analysts is an Neutral trajectory for Silicon Laboratories, with an average 1-year price target of $111.4, indicating a potential 75.1% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Diodes, Synaptics and Silicon Laboratories, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Ambarella is positioned at the top for Revenue Growth with 2.58%. It is at the bottom for Gross Profit with $38.74M. Ambarella is at the bottom for Return on Equity with -6.33%.

All You Need to Know About Ambarella

Ambarella Inc is a developer of semiconductor processing solutions for high-definition video capture, sharing, and display. The firm's solutions are sold to original design manufacturers and original equipment manufacturers to be designed for use in infrastructure broadcast encoders, wearable device cameras, automotive cameras, and security cameras. Ambarella's system-on-a-chip designs, based on its proprietary technology platform, are highly configurable to applications in various end markets. Geographical presence in Taiwan, Asia Pacific, Europe, North America, and the United States. The firm derives the majority of its revenue from Taiwan.

Ambarella's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Ambarella displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 2.58%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Ambarella's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -54.75%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Ambarella's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.33%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Ambarella's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.41%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Ambarella's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Ambarella visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.