NEW YORK (TheStreet) -- Shares of Ambarella (AMBA) were gaining 1.6% to $93.69 after-hours Tuesday after the chipmaker beat analysts' estimates for earnings and revenue in the first quarter of fiscal 2016.
Ambarella reported earnings of 71 cents a share, above analysts' estimates of 59 cents a share for the quarter. Revenue grew 73.5% year over year to $71.01 million for the quarter, compared to analysts' estimates of $67.36 million for the quarter.
"In addition to continued growth from our existing wearable, IP security and automotive video recorder camera markets, we see increased activity across a wide range of home monitoring cameras including models by U.S. service providers, as well as from quadcopters or flying cameras," President and CEO Fermi Wang said. "We look forward to continued success, as we enable the next generation of intelligent HD and Ultra HD cameras."
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 a number of 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, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel its 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."