Buying back stock to pump up earnings is a fools errand with AMBA. Their extra cash should go into R&D. It is a fast paced market with lots of competition coming down the road. Management could careless about manipulating the stock price. Plus AMBA does not have a huge amount of shares outstanding.
Actually wrong there buckaroo on the revenue. Projected revenue was $14.75 B and they came in at $15.24 B. In my book that is not a miss.
Ambarella (AMBA) will report earnings later this week, and Stifel’s Kevin Cassidy and his team reiterated a Buy rating Monday, writing that they believe the company “can return to its ‘beat-n-raise’ quarterly reports.”
Cassidy writes that he has zero revenue from GoPro (GRPO) in his estimates for the quarter, and he estimates that the IP surveillance market could make up as much as 50% of sales in the fourth quarter and 40% of revenue in fiscal 2017.
He also sees an opportunity for Ambarella to ramp up its automotive business throughout this year—more proof that the company is transitioning away from being known only as a GoPro supplier.
More detail from his note:
We believe our IP surveillance-related revenue estimates are sufficiently conservative to account for possible deferred spending by the Chinese government. Possible upside to our estimates is in the consumer home monitoring market where ATT, Comcast, Nest, D-Link and AmCrest to name a few have launched Ambarella-based cameras through CY15. Our 4QF16 revenue estimates also include a 9% sequential decline in drone-related revenue. This may prove conservative considering increasing drone popularity and a more clear understanding of drone government regulations. We believe concerns over Intel and Qualcomm entering the drone market are overblown. We view these companies as interested in controlling the drone and not Ambarella’s area of expertise, video compressing and recording. Two much different use cases, in our view. We believe Ambarella has been able to maintain its video processors’ average selling prices and gross margin through providing a very wide range of price/performance trade-offs which the competition cannot match. We expect that following the GoPro-related revenue correction, Ambarella’s top line can resume its +20% annual growth. This growth is driven by new markets the company’s video processing technology is creating such as IP surveillance, wearables, flying and automotive cameras.
Think you are focusing on the negative. I heard it when it was being done and as I recall they were doing a little managemet expectations. Meaning they wanted us to know that Gopro was slowing and inventory was building. That was a reality, not negative. They also discussed how they are branching out and other products are taking up some of the slack.
DIS will not split their shares anytime soon. These are different times for stock splits. GOOG, AAPL and many others are letting the price run and only considering a split much later than normal. You also mentioned brightness. You are aware that splits do nothing for the stock price right? If I give you four quarters for one dollar are you richer? I assume you have invested for sometime and get this? Splits mean nothing.
Thanks Bernie for weighing in. It is not so much something wrong with the system as the stock. AMBA disappointed. That is it. It will take a along time to recover and may never recover. Those of us who fell in love with this stock and its story are fools. Myself included.
Oh really. Boy that is news to every investor on this board and the rest of the world for that matter. Please tell me oh great one what drives stocks?
While I agree with you I still think this article is relevant. A cut from $60 to $50 is not a good thing as I believe a lot of us here (me included) are in at a higher price than $60. Showing two different view points is not a bad thing. Given a choice I would much rather go with the Stifel opinion than the Deutsche Bank. We will know in about 75 hours. Just my $.02.
Reading that article I do not believe this replaces AMBA, it just adds a new software program to make playing back video with poorer quality easier to do. Would be interested in other opinions of the article.
Agree. It was nice to see it hold its own. Hopefully we start building a base and increasing slowly each day. Earnings only a couple of weeks away. Exciting times again maybe?
Sorry Northerntrader guy but in reality AMBA has forecast a serious downturn in earnings and revenue. That speaks for itself. I am buried deep in this thing and feel like a fool after making a lot of money on the first run and thinking it could happen again. If it does run up it will not be any time soon. At the moment I am selling what few shares I have left to try and not get hurt any worse than I already have. This has been a painful lesson in the famous phrase "trying to catch a falling knife".
If you want to read a topical article to either dismiss or perpetuate your question (it has been floating on this board for many months) read the recent Motley Fool article. Their opinion is more that QCOM will compete with AMBA instead of buy them out.
This is a little disconcerting. Why going up on low volume with no news? Not a trader or know the technical makeup of a move like this but would love to hear someone weigh in.