Ambarella (AMBA), a maker of chips for video processing and computer vision, late Tuesday beat Wall Street’s targets for its fiscal fourth quarter and guided higher for the current period. The news drove AMBA stock up in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 14 cents a share on sales of $62.1 million in the quarter ended Jan. 31. Analysts expected Ambarella earnings of 8 cents a share on sales of $58.1 million. On a year-over-year basis, Ambarella earnings were unchanged while sales climbed 9%.
Ambarella returned to sales growth in the fourth quarter after two quarters of decline.
For its fiscal first quarter ending April 30, Ambarella expects to generate revenue of $67 million to $70 million. The midpoint of $68.5 million is well above Wall Street’s target of $56.4 million. Ambarella’s sales in the year-earlier quarter were $54.7 million.
AMBA Stock Jumps In Late Trades
In after-hours trading on the stock market today, AMBA stock jumped 7.9%, near 122.70. In the regular session, AMBA stock fell 4.3% to 113.71 during an overall down day for stocks.
Ambarella’s products are used in video security, automotive safety, autonomous driving and robotic applications. Ambarella’s low-power system on a chip products offer high-resolution video compression, advanced image processing, and deep neural network processing.
“Demand for our AI vision silicon products accelerated in fiscal 2021 with more than 175 unique customers purchasing engineering parts and/or development systems, including more than 40 who reached production volumes,” Chief Executive Fermi Wang said in a news release.
Wang added, “In fiscal 2022, we intend to continue to build on our AI vision momentum, driving CV (computer vision) to at least 25% of revenue.”
Ambarella A Laggard In Fabless Chipmaker Group
Earlier Tuesday, Ambarella announced that Motional, a global leader in driverless technology, has selected Ambarella’s CVflow family of AI processors for its driverless vehicles.
AMBA stock ranks No. 23 out of 31 stocks in IBD’s Electronics-Semiconductor Fabless industry group. It has a subpar IBD Composite Rating of 46 out of 99, according to the IBD Stock Checkup tool.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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