Shares of the fabless semiconductor design company, Ambarella (NASDAQ: AMBA) were on a downslide in pre-market trading at the time of publishing on Wednesday after the company’s guidance for the second quarter left investors disappointed.
Looking forward, the company has guided revenues in the range of $60 million to $64 million in Q2, below the consensus estimates of $66.8 million. On an adjusted basis, Q2 gross margin is expected to be between 62.5% and 64.5%.
In Q1, Ambarella’s revenues declined by 31% year-over-year to $62.1 million, falling short of analysts’ forecasts of $66.87 million. More disappointingly, the company swung to an adjusted loss in Q1 of $0.15 per share versus adjusted earnings of $0.44 per share in the same period last year. However, this adjusted loss was still narrower than analysts’ expectations of a loss of $0.20 per share.
Overall, analysts are bullish about AMBA stock with a Strong Buy consensus rating based on nine Buys and two Holds.