Skip to main content

Market Overview

Ambarella's Hyper-Seasonality Continues To Be A Concern

Ambarella's Hyper-Seasonality Continues To Be A Concern

Previewing Ambarella Inc (NASDAQ: AMBA)'s fourth-quarter results, Deutsche Bank said in a note released on Thursday the hyper-seasonality of the company's demand patterns continues to leave it on the sidelines. That said, the firm is impressed with the company's continued advances in technology and end-market applications.

Q4 Headline Numbers To Align With Street

Analysts Ross Seymore and Sidney Ho expects a likely in-line print for the fourth quarter as GoPro Inc (NASDAQ: GPRO) appears back on track. The analysts expect Ambarella's fourth-quarter revenues to be at $87 million, above the $86 million Street view, with the upside attributed to better than expected growth in sports/wearables. The segment is expected to report a 20 percent sequential drop. Earnings per share are likely to match the Street estimate of $0.75, the analysts added.

Related Link: Ambarella Slowly Emerging From GoPro's Shadow

Expected Q4 Performance By Other Segments

  • IP Security: Down 8 percent sequentially.
  • Drones: Down 15 percent sequentially on seasonal build patterns.
  • Auto: 10 percent sequential drop.

Above-Consensus Q1 Guidance Likely

Deutsche Bank expects Ambarella to guide first-quarter revenues to $76 million, above the $71 million consensus estimate, and earnings per share to $0.58 versus the $0.48 Street estimate. Segment-wise break-up of expectations concerning the first quarter guidance are as follows:

  • IP Security: Down 8 percent sequentially.
  • Auto: Down 5 percent sequentially.
  • Drones: Flat.
  • Sports & Wearables: Down 25 percent sequentially, incorporating a conservative potential first half inventory burn estimate.

The company is scheduled to release its results after the market close Feb. 28.

Deutsche Bank maintains its Hold rating and $65 price target for the shares of the company.

At the time of writing, Ambarella was surging up 3.17 percent to $58.84.

Latest Ratings for AMBA

Mar 2021Wells FargoInitiates Coverage OnEqual-Weight
Mar 2021Craig-HallumMaintainsBuy
Mar 2021Roth CapitalMaintainsBuy

View More Analyst Ratings for AMBA
View the Latest Analyst Ratings


Related Articles (AMBA + GPRO)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Guidance Previews Reiteration Analyst Ratings Movers Best of Benzinga

Latest Ratings

YETIB of A SecuritiesMaintains105.0
PPGRBC CapitalMaintains193.0
FTCHCredit SuisseMaintains84.0
ABNBB of A SecuritiesMaintains180.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at