Benzinga | Mar 1, 2021 10:14AM EST

Ambarella Earnings Preview

Ambarella (NASDAQ:AMBA) unveils its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect Ambarella's EPS to be near $0.08 on sales of $58.08 million. In the same quarter last year, Ambarella posted EPS of $0.14 on sales of $57.21 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 42.86% decline in the company's earnings. Sales would be up 1.52% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.05 -0.02 -0.01 0.11EPS Actual 0.09 0.06 0.04 0.14Revenue Estimate 55.04 M 50.03 M 54.31 M 57.18 MRevenue Actual 56.09 M 50.11 M 54.65 M 57.21 M

Stock Performance

Shares of Ambarella were trading at $112.49 as of February 26. Over the last 52-week period, shares are up 101.79%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ambarella is scheduled to hold the call at 16:30:00 ET and can be accessed here.