Ambarella (AMBA) Stock Is Up Today on Earnings Beat
NEW YORK (TheStreet) -- Shares of Ambarella (AMBA) - Get Report were gaining 4.1% to $65.62 Wednesday after the chipmaker beat analysts' estimates for earnings and revenue in the fourth quarter of fiscal 2015.
Ambarella reported earnings of 68 cents a share for the quarter, above analysts' estimates of 49 cents a share. Revenue grew 61.9% year over year to $64.7 million for the quarter, beating analysts' estimates of $59.38 million.
The HD video compression and image processing chipmaker reported gross margin of 64.3% for the quarter, up from 64.1% in the year-ago quarter.
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Ambarella said it expects to report revenue of $64 million to $68 million for the first quarter of fiscal 2016, above analysts' estimates of $59 million for the quarter. The company expects gross margin of 62% to 64% for the first quarter.
"Our strong fourth quarter and fiscal year results reflect the steady expansion of our product offerings and customer growth across our core markets, as well as early growth in new markets," President and CEO Fermi Wang said. "During the fourth quarter we had strong year-over-year growth in our wearable, IP Security and automotive aftermarket revenues."
TheStreet Ratings team rates AMBARELLA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMBARELLA INC (AMBA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
You can view the full analysis from the report here: AMBA Ratings Report