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Ambarella (AMBA - Free Report) is the source of the tech behind the GoPro (GPRO) and super high definition cameras. That said, the company hasn't done that great of job of late in communicating with Wall Street. The most recent quarter was a nice beat, but guidance was below expectations and that sent estimates lower. When estimates fall, the Zacks Rank slides and today AMBA is the Bear Of THe Day.
Recent Earnings
AMBA reported Earnings of $0.13 on June 5 after the close. That was $0.04 better than the Wall Street Estimate. Revenues were down 11% from the previous year, but slightly ahead of the consensus estimate at $56.9M.
The company guided next quarter revenue to $60-$64M but that was well below the $68.18M consensus estimate and the stock suffered as a result.
Downgrades
Following the release, Oppenheimer downgraded the stock to perform from outperform noting that the company has less room for error going forward.
Several other brokers lowered price targets, with Deutsche Bank moving their number to $44 from $51. Stifel cut their target to $56 from $64 as well.
Estimates
The Zacks Rank doesn't look at price targets or recommendations. It focuses only on earnings estimate revisions and following the most recent quarter AMBA estimates really moved lower.
The current quarter saw estimates chopped in half (well a penny more than a half) as they tumbled from $0.28 to $0.13.
The current fiscal years moved from $1.43 to $0.78 and the next fiscal year moved from $2.02 to $1.34.
When estimates move lower like this, investors tend to sell the stock.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Bear Of The Day: Ambarella
Ambarella (AMBA - Free Report) is the source of the tech behind the GoPro (GPRO) and super high definition cameras. That said, the company hasn't done that great of job of late in communicating with Wall Street. The most recent quarter was a nice beat, but guidance was below expectations and that sent estimates lower. When estimates fall, the Zacks Rank slides and today AMBA is the Bear Of THe Day.
Recent Earnings
AMBA reported Earnings of $0.13 on June 5 after the close. That was $0.04 better than the Wall Street Estimate. Revenues were down 11% from the previous year, but slightly ahead of the consensus estimate at $56.9M.
The company guided next quarter revenue to $60-$64M but that was well below the $68.18M consensus estimate and the stock suffered as a result.
Downgrades
Following the release, Oppenheimer downgraded the stock to perform from outperform noting that the company has less room for error going forward.
Several other brokers lowered price targets, with Deutsche Bank moving their number to $44 from $51. Stifel cut their target to $56 from $64 as well.
Estimates
The Zacks Rank doesn't look at price targets or recommendations. It focuses only on earnings estimate revisions and following the most recent quarter AMBA estimates really moved lower.
The current quarter saw estimates chopped in half (well a penny more than a half) as they tumbled from $0.28 to $0.13.
The current fiscal years moved from $1.43 to $0.78 and the next fiscal year moved from $2.02 to $1.34.
When estimates move lower like this, investors tend to sell the stock.
Chart
Ambarella, Inc. Price and Consensus
Ambarella, Inc. Price and Consensus | Ambarella, Inc. Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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