Market Overview

Earnings Preview: Ambarella

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Ambarella (NASDAQ: AMBA) releases its next round of earnings this Monday, November 23. Here is Benzinga's essential guide to Ambarella's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Ambarella EPS is expected to be around $0.05, according to sell-side analysts. Sales will likely be near $54.05 million. In the same quarter last year, Ambarella reported EPS of $0.32 on revenue of $67.92 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 84.38% decline in the company's EPS figure. Sales would have fallen 20.42% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.02 -0.01 0.11 0.20
EPS Actual 0.06 0.04 0.14 0.32
Revenue Estimate 50.03 M 54.31 M 57.18 M 65.03 M
Revenue Actual 50.11 M 54.65 M 57.21 M 67.92 M

Stock Performance

Shares of Ambarella were trading at $65.345 as of November 19. Over the last 52-week period, shares are up 11.99%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ambarella is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings