GoPro (GPRO) Stock Is Up Today After Ambarella's Quarterly Results
NEW YORK (TheStreet) -- Shares of GoPro (GPRO) - Get Report were gaining 5.8% to $42.62 Wednesday following Ambarella's (AMBA) - Get Report positive fourth quarter results.
Ambarella produces HD video compression and image processing chips that GoPro uses in its action cameras.
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.
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The chipmaker reported gross margin of 64.3% for the quarter, up from 64.1% in the year-ago quarter.
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."
Shares of Ambarella were gaining 6.3% to $67.04.
