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Ambarella ( AMBA ) stock was down nearly 6% in after-hours trading Thursday, after the maker of image-processing chips issued disappointing revenue guidance while topping views for its fourth quarter. Apple ( AAPL ) supplier and IBD 50 list growth stock Broadcom ( AVGO ) was up more than 7%, however, after its quarterly report beat estimates despite slowing iPhone sales. Ambarella, which rose 2.2% in Thursday’s regular session, is a supplier to action-camera maker GoPro ( GPRO ). “During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets,” Ambarella CEO Fermi Wang said in the company’s earnings release. “This was largely offset, however, by a continued decline in the wearable sports camera market.” Ambarella is working to diversify its end markets and customer base. For its Q4 ended Jan. 31, Ambarella said revenue rose 5% from the year-earlier quarter to $68 million, and earnings per share fell 5.9% to 64 cents. That beat the view of analysts polled by Thomson Reuters, who on average expected EPS of 48 cents on revenue of $66 million. But Ambarella gave lagging guidance for its fiscal Q1 2017. It sees revenue of $55 million to $57 million and net income of $8 million to $10 million. Analysts polled by Thomson Reuters have been expecting revenue of $62 million, and net income of just over $14 million. Ambarella gets an IBD Composite Rating of 74 and Broadcom a 98 out of a possible 99, factoring in a variety of metrics such as earnings growth and stock-price gains. Several high-rated chipmakers have been approaching buy zones lately with the market returned to an uptrend, including the two chipmakers on the IBD 50 list: Broadcom and Nvidia ( NVDA ), which makes chips for computation-intensive processes including graphics, gaming and self-driving cars. Broadcom ended Thursday’s regular trading session about 9% under a buy point from a cup base. RELATED: Can IBD 50’s Broadcom Drive Chip Stocks? Scalper1 News
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