A Look Ahead: Ambarella's Earnings Forecast

Ambarella AMBA is gearing up to announce its quarterly earnings on Thursday, 2025-05-29. 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.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.13, leading to a 17.13% drop in the share price on the subsequent 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 $62.48 as of May 27. Over the last 52-week period, shares are up 28.42%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Views on Ambarella

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ambarella.

With 5 analyst ratings, Ambarella has a consensus rating of Buy. The average one-year price target is $94.0, indicating a potential 50.45% upside.

Analyzing Analyst Ratings Among Peers

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

• Analysts currently favor an Buy trajectory for Power Integrations, with an average 1-year price target of $72.5, suggesting a potential 16.04% upside.
• Analysts currently favor an Buy trajectory for Synaptics, with an average 1-year price target of $92.5, suggesting a potential 48.05% upside.
• Analysts currently favor an Buy trajectory for Diodes, with an average 1-year price target of $55.0, suggesting a potential 11.97% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary presents essential metrics for Power Integrations, Synaptics and Diodes, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Ambarella ranks first in Revenue Growth among its peers. It ranks last in Gross Profit. It ranks last in Return on Equity.

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, security cameras, consumer cameras, and industrial and robotic applications. The company'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.

Unraveling the Financial Story of Ambarella

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Ambarella's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 62.77% as of 31 January, 2025, showcasing a substantial increase in 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 -24.08%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Ambarella's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.63%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Ambarella's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.98%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Ambarella adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.