Ambarella beats Q2 revenue, adjusted EPS estimates
Overview
Ambarella fiscal Q2 rev rises 49.9% yr/yr to $95.5 mln, beating analysts' expectations, per LSEG data
Adjusted EPS for fiscal Q2 at $0.15, exceeding estimates
Co reports non-GAAP net profit of $6.4 mln, excluding stock-based compensation and acquisition costs
Outlook
Ambarella expects Q3 revenue between $100 mln and $108 mln
Company anticipates Q3 non-GAAP gross margin of 60.0% to 61.5%
Ambarella sees Q3 non-GAAP operating expenses of $54 mln to $57 mln
Company raises fiscal 2026 revenue growth estimate to 31%-35%
Result Drivers
EDGE AI GROWTH - Strong secular growth in edge AI market and expanding applications drive unit demand, per CEO Fermi Wang
HIGHER PRICED PRODUCTS - Demand for higher-priced 5nm AI SoCs contributes to revenue increase
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $95.51 mln | $90 mln (11 Analysts) |
Q2 Adjusted EPS | Beat | $0.15 | $0.05 (12 Analysts) |
Q2 Net Income | -$20 mln | ||
Q2 Gross Profit | $56.23 mln | ||
Q2 Income from Operations | -$21.99 mln | ||
Q2 Pretax Profit | -$19.74 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Ambarella Inc is $80.00, about 10.1% above its August 27 closing price of $71.93
The stock recently traded at 352 times the next 12-month earnings vs. a P/E of 670 three months ago
Press Release:
