Chipmaker Ambarella's Q3 revenue beats estimates

Overview

• Ambarella fiscal Q3 revenue grows 31.2% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 beats consensus, reflecting operational efficiency

• Company reports non-GAAP net profit despite GAAP net loss

Outlook

• Ambarella expects Q4 revenue between $97.0 mln and $103.0 mln

• Company projects non-GAAP gross margin of 59.0% to 60.5% for Q4

• Ambarella raises full-year revenue growth guidance to 36%-38%

Result Drivers

• EDGE AI REVENUE - Record edge AI revenue for sixth consecutive quarter, driving overall revenue growth

• DEMAND FOR EDGE AI - Rising demand for edge AI applications contributing to revenue growth

• HIGHER SELLING PRICES - Increased average selling prices supporting revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Ambarella Inc is $95.00, about 5.7% above its November 24 closing price of $89.57

• The stock recently traded at 178 times the next 12-month earnings vs. a P/E of 301 three months ago

Press Release: ID:nGNX16jNRf

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