Ambarella (AMBA) Estimates Slashed at Needham & Company

Needham & Company analyst N. Quinn Bolton slashed estimates on Ambarella (NASDAQ: AMBA) while reiterating a Hold rating.

The cut reflect lower sports camera and professional security revenue.

"GoPro's disappointing 3Q15 results and 4Q15 outlook, together with a substantial increase in GoPro inventory levels, lead us to believe GoPro will likely reduce order rates in F2H16 to clear inventory," Bolton commented. "We have also modestly reduced our professional IP security forecast to reflect soft demand conditions in China. Reiterate Hold, reflecting the magnitude of expected order cuts."

The firm reduced F3Q16 and F4Q16 estimates to $79.5MM/$0.70 and $67.5MM/$0.47 from $91.5MM/$0.89 and $78.0MM/$0.65. The firm's FY17 estimates decline to $350MM/$2.85 from $395MM/$3.40. They introduce FY18 estimates of $395MM/$3.10.

For an analyst ratings summary and ratings history on Ambarella click here. For more ratings news on Ambarella click here.

Shares of Ambarella closed at $49.44 yesterday.

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