PREVIEW: Ambarella shares up; seen reporting quarterly loss, rev decline

Ambarella

29/08/2023 17:43

** Shares of chip maker Ambarella  AMBA.O  up 3.4% on Tuesday
ahead of Q2 report due after market close
    ** AMBA, which has developed chips for security cameras,
automotives and artificial intelligence inference, expected to
report adj loss/shr of $0.21 vs EPS gain of $0.20 in year-ago
quarter on rev of $62.05 mln, which would be down ~23% y/y,
according to Refinitiv
    ** AMBA met or beat Wall St expectations for rev in last 8
quarters while EPS beat estimates handily each quarter,
according to Refinitiv 
    ** But after it provided disappointing Q2 financial targets
on May 30, the stock lost ~12% in following session
    ** In preview for the quarter Morgan Stanley analyst Joseph
Moore said he sees "technology progress amid weaker near term
numbers" for AMBA. He cited challenges in surveillance camera
market but progress with automotive pipeline and new opportunity
in artificial intelligence inference market
    ** Moore who rates the stock 'overweight' with $89 PT sees
"very positive risk reward given how weak the stock has been"
    ** With move on Tues, AMBA down ~9% YTD vs ~43% gain for
Philadelphia semiconductor index  .SOX  and Nasdaq's  .IXIC  33%
advance
    ** AMBA last traded at $74.97 vs median PT of $90.50 as per
Refinitiv, which shows 2 'strong buy' ratings, 10 'buy,' 6
'hold' and one 'sell' rating

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))