Why Semiconductor Company Ambarella Shares Are Higher Premarket Wednesday
Portfolio Pulse from Lekha Gupta
Ambarella, Inc (NASDAQ:AMBA) shares rose in premarket trading after reporting Q4 FY24 results that exceeded expectations. Despite a 38.1% Y/Y revenue decline to $51.62 million, it marginally beat the consensus. The adjusted EPS loss of $(0.24) also surpassed expectations. The company forecasts Q1 FY25 revenue between $52 million and $56 million, with an adjusted gross margin of 61.5%-63.0%. CEO Fermi Wang highlighted the potential for revenue growth in FY25, driven by AI product strength and inventory management strategies.
February 28, 2024 | 1:53 pm
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Ambarella, Inc reported better-than-expected Q4 FY24 results, with a slight revenue beat and a smaller EPS loss than anticipated. The company provided an optimistic revenue outlook for Q1 FY25, expecting growth driven by AI product strength.
Ambarella's stock price is likely to rise in the short term due to the positive earnings report and optimistic revenue outlook for FY25. The company's focus on AI products and inventory management strategies are expected to drive growth, making this news highly relevant and important to investors. The confidence in this analysis is high, given the clear beat on expectations and the positive premarket price action.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100