AMBA beats consensus by 16c, guides lower

Ambarella (NASDAQ: AMBA) reported Q4 EPS of $0.64, $0.16 better than the analyst estimate of $0.48. Revenue for the quarter came in at $68 million versus the consensus estimate of $65.83 million.


Ambarella sees Q1 2017 revenue of $55 - $57 million, versus the consensus of $62.4 million.



Thanks Justin.
Is this cause for concern? I would like to continue to be long AMBA for the long haul, but the 2017 guidance concerns me.
I"m serious to know how you and the others on this board feel about hanging onto AMBA.

thanks, az5speedy

az5speedy, This statement from the press release caught my eye: (emphasis mine)

“For the full fiscal year 2016, we grew revenue by 45 percent. During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets. This was largely offset, however, by a continued decline in the wearable sports camera market,” said Fermi Wang, president and CEO of Ambarella. “In addition, during the quarter we delivered our first 14nm chip, H2, and continued to successfully diversify and expand our end markets and customer base.”

To me this indicates good long-term potential, though possibly short-term difficulties. I’m fine with that. But I will wait to find out what management says in the conference call.

Anybody know what percentage of sales, GPRO represented for AMBA this Q?

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Thank you Othalan. I noticed that statement as well. I, too, will be curious to see what management says in the conference call.

71% profit decline. I read it on the internet.…


Adjusted EPS .64, down from .68 prior year, 6% decrease.

Also waiting for the transcript. Cheers.

If I were the CEO, I would have said something like

“The already known continued decline in the wearable sports camera market was offset by strong sales in…drones etc”

Better spin! :slight_smile:

There really is nothing new here, except confirmation that AMBA is successfully diversifying away from GOPRO. They’re continuing to generate and hoard cash. The long-term potential is there. Obviously, growth has slowed, and until potential is realised, that’s all it is. Saul has already left the stock and put his cash into stocks he believes are better (good value and still growing).

I think all longs (including myself) can enjoy these results. Nothing surprising as we already knew gopro sales had declined. And you never know, when gopro releases a new model (Hero 5 later this year), there may be another huge boost in revenue.
But of course, long-term all rests on drones, security, automative markets. Until that’s realised, this is a risky stock.


Anybody know what percentage of sales, GPRO represented for AMBA this Q?

Not sure about this quarter but historically this was 30%.

Then you have this quote from the CC:

the actual demand from GoPro is expected to decline to the low single-digits as a percent of revenue in Q1, with the likelihood that this weakness will continue at similar levels until the launch of any new products with our chip.

Low single digits?! So for now, it seems, the impact of GPRO is going from 30% historically to almost negligible? On the flip side, this will finally give us the decoupling of the AMBA stock from GPRO stock.


I thought I read that GPRO estimated to be about 25% of AMBA sales this Q. I think this was down from 40% previously, so some diversification is going on.


GPRO is up 7% this morning. WTF? I give up… :slight_smile:

GPRO is up 7% this morning. WTF? I give up… :slight_smile:

FWIW, GoPro has been on a tear the past month, up 40%. Doesn’t help my shares much as they’re priced much higher, so they’re not up, but improving!

I do think when they release their new models this year (Hero 5 and Karma drone), that they’ll do well. They’re late to the party with the drone, but they still have the best brand recognition in the industry at this time. If people want to own an action cam, they want a GoPro first.

But that’s my rose-colored glasses…

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