Street Sees Ambarella Posting 49% Growth In Q4 Revenue

Ambarella Inc AMBA fourth quarter results expected Tuesday should show substantial growth in light of a strong market for its video processing chips sold to action camera makers and to the security market,

Santa Clara-based Ambarella closed Monday up more than 7 percent at $61.65; since December, shares area up more than 16 percent.

Wall Street expects Ambarella to post fourth-quarter earnings growth of 88 percent to $0.49 a share, while revenue is expected to increase 49 percent to $59.4 million.

Related Link: Xiaomi's $64 Camera Burns GoPro, But Boosts Ambarella

About 55 percent of Ambarella's revenue last year came its five largest customers, which it didn't identify.

GoPro Inc GPRO last month posted revenue growth of 75 percent. The action camera maker is among Ambarella's customers.

At least one analyst has estimated that GoPro provides as much as 30 percent of Ambarella's revenue, according to a report by Marketwatch.