Ambarella’s Upcoming Q4 Earnings Preview

Deutsche Bank analysts provided their views on Ambarella, Inc. (NASDAQ:AMBA) ahead of its upcoming Q4 earnings announcement.

After a roughly in-line Q3 was followed by a softer Q4/Q1 guide, the analysts expect an approximately in-line report for Q4 revenues as any incremental gains from easing kitting constraints are offset by weaker macro and industry-specific headwinds which should only pick up steam heading into Q1.

According to the analysts, the company admirably remains committed to its long-term plans, and they believe the company positioned it well for the future with a landmark design win at Continental AG in addition to a win with Kodiak Robotics, their recently re-sized Auto funnel/backlog (now at $2.3 billion) and continued rollout/development of industry-leading tech (CV5 production ramping and CV3 sampling).

Despite admiring management's commitment to the long-term plans, the analysts believe the near-term weakness and lack of clarity surrounding revenue timing lead them to believe that much of the company's growth potential is reflected in the stock.