NEW YORK (TheStreet) -- Amabarella (AMBA) - Get Report stock is falling by 0.17% to $41.06 in afternoon trading on Tuesday, before the Santa Clara, CA-based semiconductor company reports its fiscal 2017 first quarter financial results after Thursday's market close.
The manufacturer of chips for action cameras and drones is expected to report double-digit declines in earnings per share and revenue.
Analysts are estimating earnings of 27 cents per share on revenue of $53.18 million for the latest quarter, compared with earnings of 71 cents per share on revenue of $71.01 million for the fiscal 2016 first quarter.
"[W]e anticipate revenue will decline roughly 15% Y/Y with less visibility into professional security camera sales in China and essentially zero chip sales to previously top customer GoPro (GPRO) given sports camera inventory in the channel and the delay of GoPro's Karma drone," Canaccord analysts wrote in a note released this morning.
Ambarella could improve in the long term as growing industries, such as wearables, security, automotive and drone cameras, remain strong, analysts added.
Separately, Ambarella has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and reasonable valuation levels.
You can view the full analysis from the report here: AMBA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.