BUZZ-Ambarella drops after CFO warns of sequential decline in Q4 revenue
Ambarella's shares dropped 6.6% premarket to $84.95 after the CFO warned of a sequential decline in Q4 revenue, expected between $97 million and $103 million. The decline is attributed to seasonality affecting automotive and IoT sectors. Despite narrowing net loss to $15.1 million and Q3 revenue of $108.45 million surpassing estimates, the stock reacted negatively. The stock had risen 25.06% YTD before this announcement.
Shares of chip designer Ambarella (AMBA.O) fall 6.6% to $84.95 premarket after CFO warns of sequential decline in Q4 revenue
Co sees Q4 revenue in the range of $97 mln-$103 mln, down sequentially
“Sequentially, due to seasonality, we expect a mid to high single-digit decline in both our automotive and IoT businesses,” CFO John Young says in the earnings call
Co’s net loss narrows to $15.1 mln; loss driven by high R&D spend despite strong revenue growth
Co posts Q3 revenue $108.45 mln, above est. of $104.12 mln; adj. EPS $0.27, above est. of $0.21 - data compiled by LSEG
Up to last close, stock up 25.06% YTD
