NEW YORK (TheStreet) -- Ambarella (AMBA) - Get Report stock is advancing 9.45% to $46.49 on heavy trading volume Friday afternoon following the release of company's fiscal 2017 first quarter financial results which exceeded expectations.

After yesterday's market close, the Santa Clara, CA-based camera chip manufacturer reported earnings of 34 cents per share, topping earnings estimates of 28 cents per share.

Revenue dropped 19.5% year over year to $57.16 million for the quarter ended April 30, but beat projections of $57.01 million.

Ambarella's management was optimistic about the second half of fiscal 2017 because of improving trends in drones, wearables, China and homes security, Deutsche Bank analysts said in a note released this morning.

The company's positive tone implies "an overall better-than-feared FY17 and a potentially promising runway for FY18 acceleration," analysts added.

So far today, 5.98 million shares of Ambarella have been traded, compared with its average daily volume of 1.2 million shares.

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.

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