Oppenheimer Reiterates Perform on Ambarella (AMBA)
Oppenheimer reiterated a Perform rating on Ambarella (NASDAQ: AMBA) following the company's 4Q earnings report. Revenue was up 29% Y/Y and down 13% Q/Q due to strong Y/Y growth from GoPro.
Analyst Andrew Uerkwitz commented, "Ambarella slightly bear on January quarter revenue/non-GAAP EPS of $87.5M/$0.92 vs. consensus of $86M/$0.75 but reported a miss for F1Q17 revenue guidance. End market diversification is starting to pay off as the company saw good growth in nonaction camera segments. And it looks to have been the right strategy as the company (and investors) finally have a resolution with the on-again-off-again headwind that is GoPro. Management indicated it has lost at least one socket in coming GoPro cameras. Medium to longer term, we believe this is a good thing as AMBA, in our opinion, wasn't getting credit for its technology and growth from ex-GoPro segments. In the near term, it resets expectations to lower levels across the board. We sit sidelined until the dust settles."
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Shares of Ambarella closed at $58.95 yesterday.