Semiconductor maker Ambarella (AMBA), a key supplier of imaging chips for GoPro (GPRO), jumped in after-hours trading Thursday after its first quarter earnings outpaced analyst estimates. Notably, though Ambarella highlighted a slowdown in revenues from GoPro, finance chief George Laplante reiterated expectations of a rebound in the wearable action camera market.
RESULTS: Ambarella reported Q1 adjusted earnings per share of 34c versus estimates of 28c, and revenue of $57.2M against expectations for $57.01M.
GOPRO IMPACT: Speaking during the company's earnings conference call, Ambarella CEO Fermi Wang attributed the year-over-year revenue decrease primarily to a decline in the wearable action camera market. Wearables were down "substantially" from the previous year, representing just 15% of total sales after a "significant" decline in revenues from GoPro. Those near-term action camera headwinds remain, Wang cautioned. Expanding those remarks, CFO George Laplante noted that the company continues to forecast a recovery of the wearables market to "somewhat normal" levels, "most likely" in the second half of the year.
PRICE ACTION: Shares of Ambarella rose 8.9% to $46.26 in after-hours trading, while GoPro gained 2.61% to $11.00.
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