On Friday, Ambarella posted higher-than-expected second-quarter earnings.
The video compression/ image processing semiconductor company’s adjusted earnings of 21 cents a share for the quarter significantly surpassed Zacks Consensus Estimate of 3 cents per share. The EPS in the year-ago quarter was 25 cents.
Revenue of $56.4 million for the quarter came in lower than the year-ago quarter’s $62.5 million, but beat analysts’ estimate of $52 million (according to Zacks).
Ambarella’s forecast for the fiscal third-quarter revenue ranges between $63 million and $67 million.
Ambarella CEO Fermi Wang emphasized that the company’s optimism for its fiscal year 2020 prospects has increased, despite geopolitical uncertainty.
The Moving Average Convergence Divergence (MACD) for AMBA turned positive on April 29, 2024. Looking at past instances where AMBA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AMBA's RSI Oscillator exited the oversold zone, of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 30, 2024. You may want to consider a long position or call options on AMBA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMBA advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMBA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMBA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMBA entered a downward trend on May 01, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. AMBA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.715) is normal, around the industry mean (6.706). P/E Ratio (0.000) is within average values for comparable stocks, (59.973). Projected Growth (PEG Ratio) (2.278) is also within normal values, averaging (3.157). AMBA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (8.937) is also within normal values, averaging (32.653).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AMBA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of video compression and image processing semiconductors
Industry Semiconductors