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What's in Store for Ambarella (AMBA) This Earnings Season?

Zacks Equity Research

Ambarella, Inc. AMBA is slated to release first-quarter fiscal 2021 results on Jun 2.

For the fiscal first quarter, the company estimates revenues in the $52-$57 million band. The Zacks Consensus Estimate for the same is pegged at $54.3 million, indicating a 15% year-over-year jump.

For the quarterly earnings, the consensus mark stands at a loss of a penny. In the year-ago quarter, the company had reported earnings per share of a penny.

In the last reported quarter, the company’s non-GAAP earnings per share were 14 cents, flat, year over year. Further, revenues increased 12% year over year to $57.2 million.

Ambarella, Inc. Price and Consensus

Ambarella, Inc. Price and Consensus

Ambarella, Inc. price-consensus-chart | Ambarella, Inc. Quote

Let’s see how things have shaped up for this announcement.

Factors at Play

Ambarella’s earnings are likely to have benefited from strong design wins and customer engagement with its AI-enabled video-processing chips in the consumer security camera. The company is gaining from solid momentum in CV2, CV22 and CV25. Notably, in fiscal 2020, these products generated production revenues from 1,000 customers.

The company, during its fourth-quarter fiscal 2020 earnings conference call, had stated that momentum in the aforementioned products will likely continue in fiscal 2021. Moreover, Ambarella projects the CV product portfolio to contribute 10% to the total fiscal 2021 revenues.

Nonetheless, supply-chain disruptions in China and non-China regions amid the coronavirus-induced global lockdown are expected to have hurt the fiscal first-quarter performance. During its last earnings conference call, management had noted witnessing some order push as well as cancellations in the beginning of the fiscal first quarter due to the coronavirus-led business disruptions.

What Our Model Says

Our proven model does not predict an earnings beat for Ambarella this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Ambarella currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

The J. M. Smucker Company SJM has an Earnings ESP of +4.33% and carries a Zacks Rank 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company CPB has an Earnings ESP of +1.23% and currently carries a Zacks Rank of 2.

Accenture ACN has an Earnings ESP of +0.65% and holds a Zacks Rank of 3 currently.

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