Ambarella Shares Up 24% on Strong Q3 Beat

Ambarella, Inc. (NASDAQ:AMBA) shares were trading 23% higher Wednesday afternoon, following the company’s reported strong Q3 beat, with EPS coming in at $0.57, compared to the consensus estimate of $0.49. Quarterly revenue was $92.17 million, beating the consensus estimate by 1.87%.

The company’s guidance was raised smaller in magnitude than in past quarters as supply issues weigh on the company’s ability to address demand. The cause of the moderated outlook stems from matched set issues at customers offsetting the resolution of wafer supply constraints from the Texas freeze earlier this year.

More important than these near-term dynamics, the company’s longer-term outlook remains robust, with the company providing an impressive update to its estimated Automotive revenue funnel, which it now expects to be around $1.8 billion over six years.