Ambarella reported earnings of 68 cents a share for the third quarter, beating analysts' estimates of 54 cents a share. Revenue grew 42.8% year over year to $65.7 million for the quarter, compared to analysts' estimates of $62.54 million.
The company, which supplies video compression and image processing chips to GoPro (GPRO) , reported a gross margin of 63.4% for the third quarter, compared to a gross margin of $63.8% in the year-ago quarter. Gross margin for the nine months that ended Oct. 31 was 63.7%, compared to 63.2% in the year-ago period.
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 several positive factors, 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 expanding profit margins. 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