Group 1 - Deep-pocketed investors are adopting a bullish approach towards Ambarella, indicating potential significant developments ahead [1] - Recent options activity for Ambarella shows 18 extraordinary trades, with 38% of investors leaning bullish and 22% bearish; notable trades include 7 puts totaling $978,493 and 11 calls amounting to $2,035,257 [2] - Significant investors are targeting a price range of $77.5 to $115.0 for Ambarella over the past three months based on trading activity [3] Group 2 - The average open interest for Ambarella options is 163.91, with total volume reaching 4,367.00; the trading activity is focused within the strike price corridor from $77.5 to $115.0 over the last 30 days [4] - Analysts have issued ratings for Ambarella, with a consensus target price of $101.4; recent ratings include a downgrade to Buy with a price target of $100 from Needham and Stifel, while Rosenblatt maintains a Buy rating with a target price of $115 [11][12] Group 3 - Ambarella Inc specializes in semiconductor processing solutions for high-definition video capture and display, serving various markets including automotive and security cameras; the majority of its revenue is derived from Taiwan [10] - The current trading volume for AMBA is 2,586,416, with a price decrease of 12.55%, bringing the stock price to $79.55; the next earnings report is scheduled for 91 days from now [14]

Market Performance - U.S. stocks experienced an upward trend, with the Dow Jones index increasing by over 350 points, closing at 47,466.81, a rise of 0.75% [1] - The NASDAQ rose by 0.93% to 23,240.04, and the S&P 500 gained 0.82% to 6,821.37 [1] - Information technology shares saw a significant increase of 1.5% [1] Sector Performance - Communication services stocks declined by 0.4% on the same trading day [2] Commodity Prices - U.S. crude oil inventories rose by 2.77 million barrels for the week ending Nov. 21, contrasting with market expectations of a 0.5 million-barrel decrease [3][11] - Oil prices increased by 0.1% to $58.01, while gold rose by 1.4% to $4,196.60 [5] - Silver prices surged by 4.3% to $53.135, and copper increased by 2.1% to $5.1955 [5] European Market Performance - European shares showed positive movement, with the eurozone's STOXX 600 rising by 1.12% [6] - Spain's IBEX 35 Index increased by 1.35%, London's FTSE 100 rose by 0.94%, Germany's DAX 40 gained 1.03%, and France's CAC 40 rose by 0.90% [6] Asian Market Performance - Asian markets closed mostly higher, with Japan's Nikkei gaining 1.85% and India's BSE Sensex increasing by 1.21% [7] Economic Indicators - U.S. durable goods orders increased by 0.5% month-over-month in September, following a revised 3.0% gain in August [8] - Initial jobless claims in the U.S. decreased by 6,000 to 216,000 for the week ending Nov. 22 [11] - The Chicago PMI fell to 36.3 in November from 43.8 in the previous month, below market expectations of 44.3 [11] Company-Specific Performance - Arrowhead Pharmaceuticals Inc shares surged by 19% to $55.90 after reporting better-than-expected quarterly results [9] - Amber International Holding Limited shares increased by 58% to $2.4901 following strong third-quarter sales and a $50 million buyback announcement [9] - Petco Health and Wellness Company Inc shares rose by 16% to $3.44 after exceeding third-quarter EPS expectations [9] - Nutanix Inc shares fell by 18% to $48.41 due to worse-than-expected first-quarter results and lowered FY26 sales guidance [9] - Ambarella Inc shares dropped by 15% to $77.13 following third-quarter results [9] - Zscaler Inc shares decreased by 10% to $261.36 after reporting first-quarter financial results [9]

Core Insights - Ambarella's stock experienced a significant decline of 14.4% despite exceeding earnings expectations, reporting a profit of $0.27 per share against an anticipated $0.21, with sales of $106.5 million compared to the forecast of $104.1 million [1][3] Financial Performance - In fiscal Q3 2026, Ambarella achieved record quarterly revenue, with a 31% year-over-year increase, although gross margin slightly decreased to 59.6% [2][3] - Despite reporting a pro forma profit, the company incurred a GAAP net loss of $0.35 per share, an improvement from the previous year's loss of $0.58 per share [3] Market Position - Ambarella's market capitalization stands at $4 billion, with a price-to-free cash flow ratio of nearly 58, indicating that the stock may be overvalued despite the positive cash flow of $42.9 million year-to-date [5][6] - The CEO expressed optimism about future opportunities, particularly in AI integration, forecasting Q4 revenue between $97 million and $103 million, surpassing Wall Street's expectation of $95.6 million [5]

Core Viewpoint - Ambarella (AMBA.US) shares fell over 6.5% pre-market despite reporting strong Q3 earnings, indicating market concerns about future guidance and executive changes [1] Financial Performance - Ambarella reported Q3 revenue of $108 million, a 31% year-over-year increase, surpassing analyst expectations of $104 million [1] - The company achieved earnings per share of $0.27, up from $0.11 in the same period last year and exceeding the analyst forecast of $0.21 [1] Future Guidance - For Q4, Ambarella expects revenue to be between $97 million and $103 million, indicating a sequential decline but still above analyst expectations of $94.3 million [1] Executive Changes - Leslie Kohn resigned from his position as a board member and Chief Technology Officer for personal reasons, transitioning to the role of Chief Technical Advisor [1]

Core Insights - Ambarella, Inc. reported stronger-than-expected third-quarter fiscal 2026 results, with non-GAAP earnings of 27 cents per share, exceeding the Zacks Consensus Estimate of 21 cents and showing significant improvement from 11 cents in the year-ago quarter [2][10] - The company's revenues for the third quarter reached $108.5 million, a 31.2% year-over-year increase, surpassing the Zacks Consensus Estimate of $104.1 million and management's guidance of $100-$108 million [3][10] Revenue Performance - The revenue growth was primarily driven by strong performance in the Internet of Things (IoT) and automotive segments, with IoT revenues growing in mid-teen percentage points sequentially due to increased adoption of edge AI, while automotive segment revenues rose in low single digits quarter-over-quarter [4][10] - A significant customer, WT Microelectronics, contributed 70.2% of the total revenues in the reported quarter, highlighting the reliance on key partnerships [5] Profitability Metrics - The non-GAAP gross margin for the third quarter was 60.9%, slightly above the midpoint of management's guidance range of 60-61.5%, attributed to a favorable product mix [7] - Non-GAAP operating expenses were reported at $55.3 million, slightly below the prior guidance of $54-$57 million [7] Cash Flow and Balance Sheet - At the end of the third quarter, Ambarella had cash, cash equivalents, and marketable debt securities totaling $295.3 million, an increase from $261.2 million at the end of the second quarter [8] - The company generated operating cash flow of $34.3 million and free cash flow of $31.4 million during the third quarter, with year-to-date figures of $54.6 million and $43 million, respectively [8] Future Guidance - For the fourth quarter, Ambarella forecasts revenues between $97 million and $103 million, anticipating a mid-to-high single-digit sequential revenue decline in both the automotive and IoT segments [9][10] - The Zacks Consensus Estimate for fourth-quarter revenues stands at $94.3 million, indicating a year-over-year rise of 12.3% [9] Earnings Projections - The anticipated non-GAAP gross margin for the fourth quarter is projected to be in the range of 59-60.5%, with non-GAAP operating expenses expected to be between $55-$58 million [11]

Core Insights - U.S. stock futures are showing positive movement, particularly with Nasdaq futures gaining approximately 50 points [1] - Nutanix Inc reported disappointing first-quarter financial results, leading to a significant drop in its stock price [2] Company Performance - Nutanix's quarterly earnings were reported at 21 cents per share, falling short of the analyst consensus estimate of 41 cents per share [2] - The company's quarterly sales amounted to $670.576 million, which also missed the analyst consensus estimate of $676.750 million [2] - Following the earnings report, Nutanix shares plummeted by 16.8%, reaching a pre-market price of $48.86 [2] Other Stocks Movement - Jiayin Group Inc saw a decline of 7.8%, trading at $6.83 in pre-market [4] - Zscaler Inc's shares fell by 7.2% to $269.00 after reporting its first-quarter financial results [4] - Ambarella Inc experienced a 6.7% drop to $84.84 following its quarterly results [4] - Workday, Inc. declined by 6.3% to $219.00 after its third-quarter results [4] - Pagerduty Inc's stock dipped 5.8% to $14.30 after mixed third-quarter results and a lowered FY26 sales guidance [4] - HP Inc fell 5.7% to $22.94 after issuing first-quarter EPS guidance below estimates [4] - Deere & Company declined by 4.7% to $474.95 after reporting fourth-quarter results and a worse-than-expected FY26 outlook [4] - Vera Therapeutics, Inc. saw a 3.5% decrease to $28.40 in pre-market trading [4]

Core Insights - Ambarella, Inc. is a significant player in the edge AI semiconductor industry, focusing on innovative solutions for various applications, including security cameras and automotive systems [1] Financial Performance - For the quarter ending October 2025, Ambarella reported earnings per share (EPS) of $0.27, exceeding the estimated $0.21 and showing a substantial improvement from $0.11 EPS a year ago [2][6] - The company's revenue for the same quarter was approximately $108.5 million, surpassing estimates of $94.3 million, representing a 31.2% increase from $82.7 million in the same period of the previous fiscal year [3][6] - Despite the revenue growth, Ambarella reported a GAAP net loss of $15.1 million for the third quarter, which is an improvement from the $24.1 million net loss in the same quarter of the previous year [4] Financial Metrics - Ambarella has a negative price-to-earnings (P/E) ratio of -48.58, indicating negative earnings, while its price-to-sales ratio of 10.39 suggests that investors are willing to pay a premium for its sales [5] - The company maintains a low debt-to-equity ratio of 0.02 and a current ratio of 2.66, indicating a strong financial position capable of covering short-term liabilities [5][6]

Core Insights - Ambarella (AMBA) reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing a significant increase from $0.11 per share a year ago, resulting in an earnings surprise of +28.57% [1] - The company achieved revenues of $108.45 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 4.17% and increasing from $82.65 million year-over-year [2] - Ambarella has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Ambarella's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $94.31 million, and for the current fiscal year, it is $0.50 on revenues of $379.82 million [7] Industry Context - The Electronics - Semiconductors industry, to which Ambarella belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Ambarella's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $108.5 million, exceeding the high end of the guidance range and representing a 31.2% year-over-year increase [8][20] - Non-GAAP gross margin for fiscal Q3 was 60.9%, slightly above the midpoint of the prior guidance range [20] - Non-GAAP net profit was $11.9 million, or $0.27 per diluted share in Q3 [21] Business Line Data and Key Metrics Changes - Edge AI revenue constituted about 80% of total revenue, marking the sixth consecutive quarter of record edge AI revenue [8] - Automotive revenue increased in the low single digits, while IoT revenue grew in the mid-teens, driven by the adoption of edge AI in enterprise security and portable video applications [20] Market Data and Key Metrics Changes - The company anticipates a large edge serviceable available market of $12.9 billion by fiscal year 2031, indicating significant growth potential in the edge AI market [18] - The portable video market is experiencing a resurgence, contributing significantly to the company's growth [31] Company Strategy and Development Direction - The company is committed to expanding its edge AI technology and product offerings, focusing on applications in enterprise security, automotive safety, smart home, and portable video markets [9][10] - The strategy includes increasing average selling prices (ASP) through advanced technology and product differentiation [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the edge AI opportunity, citing increasing demand across various applications and a strong product roadmap [9][10] - The company raised its fiscal 2026 revenue growth guidance to a range of 36%-38%, reflecting confidence in market demand and product performance [8] Other Important Information - The company announced that co-founder Les Kohn will step down from the board to become chief technology advisor, continuing to oversee technology direction [6] - Cash and marketable securities reached $295.3 million, increasing significantly from the previous year, indicating strong operational cash flow [21][22] Q&A Session Summary Question: How much of the 36-38% growth for fiscal 2026 is driven by unit versus ASP? - Management indicated that both unit growth and ASP growth contribute equally to the overall growth [28] Question: Can you provide more details on the portable video market? - Management noted that the portable video market includes various product lines, such as action cameras and drones, and is expected to continue growing [31] Question: What is the split between consumer and enterprise in the edge AI market? - The company reported a roughly 50/50 split between enterprise CapEx-driven and consumer markets [37] Question: How do you view gross margin moving forward? - Management stated that gross margin will depend on the contribution from high-volume customers, with a long-term target of 59-62% [40] Question: What is the outlook for the infrastructure opportunity and N1655? - Management confirmed strong design win activity and interest in the N1655, with ongoing commitment to this market [55] Question: What are the growth opportunities in the drone market? - Management expressed excitement about the drone market, particularly in autonomous capabilities, and noted that their technology is well-suited for this space [49][50] Question: How is the company managing the consumer market volatility? - Management acknowledged the volatility in consumer applications but emphasized a balanced approach between enterprise and consumer segments [36] Question: What is the expected tax outlook for the next year? - Management indicated that tax expenses will increase with revenue but will not significantly alter the overall financial narrative [97]

Ambarella (NasdaqGS:AMBA) Q3 2026 Earnings Call November 25, 2025 04:30 PM ET Company ParticipantsJohn Young - CFOLouis Gerhardy - Vice President of Corporate Development and Investor RelationsFermi Wang - CEO and Co-founderQuinn Bolton - Managing Director of Equity ResearchConference Call ParticipantsChristopher Rolland - Managing Director and Senior Equity AnalystJoe Moore - Research AnalystTore Svanberg - Managing Director and Senior Semiconductor AnalystMartin Yang - Research AnalystRoss Seymore - Manag ...