Ambarella Inc (NASDAQ:AMBA)
Ambarella, Inc. (AMBA), a national company that sells casual wear, work-wear, and accessories yesterday reported their fiscal first quarter financial results. The company reported a first quarter earnings of $2.6 million.
AMBA reported first quarter adjusted earnings of $0.39 per share which beat analyst expectations of $0.36 per share and their first quarter revenues were $64.1 million which beat analyst expectations of $63.3 million.
Ambarella forecasts revenues to be in between $69 million and $72 million for the current quarter which is below analyst expectations of $72.3 million.
Ambarella, Inc. CEO’s Comments
“Q1 revenue of $64.1 million reflects our continued push to diversify our markets and customers with strong growth in the quarter coming from IP security cameras, including both professional and home monitoring markets, and continued growth in other cameras markets including wearable and automotive cameras,” said Fermi Wang, President and CEO of Ambarella. “While our current markets continue to expand, we believe the combination of video with computer vision technology will be the real driver of new opportunities in both our current markets as well as emerging markets such as OEM automotive and robotics. We feel our investment in the development of a family of computer vision SoCs in support of our customers’ advanced video cameras will be the foundation for the future expansion of our business.” Globe Newswire
AMBA Technical Analysis
AMBA opened trading yesterday at $59.07 which was up from the previous day’s trading close of $58.95. AMBA closed trading yesterday at $59.72 and crashed down after market to $56.31, equivalent to a 6% decrease from the closing price. Taking a look at the daily chart we can see the last time AMBA traded below these levels we have to go back to April 28th when it traded at $56.22.
Taking a closer look at the daily chart we can see that before the spike down AMBA had already been in an overall downward trend dating back to May 26th when it traded at $65.05. AMBA has a float of 32.11 million shares and traded 2.74 times the normal daily trading volume on Tuesday. This is a higher price stocked than the penny stocks I normally trade but I still think their is plenty of opportunity for traders to take advantage of.
For trading purposes, I would like to see AMBA open trading on Wednesday below $57.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.
Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, and professional and consumer Internet Protocol (IP) security cameras, as well as cameras incorporated into unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market.
The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and logistics providers. Ambarella, Inc. was founded in 2004 and is headquartered in Santa Clara, California.