Ambiq Micro, Inc. (NYSE:AMBQ) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates
As you might know, Ambiq Micro, Inc. (NYSE:AMBQ) just kicked off its latest quarterly results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$38m leading estimates by 4.2%. Statutory losses were smaller than the analystsexpected, coming in at US$0.29 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Ambiq Micro's seven analysts is for revenues of US$200.9m in 2027. This reflects a huge 71% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 30% to US$0.98. Before this earnings announcement, the analysts had been modelling revenues of US$178.4m and losses of US$1.19 per share in 2027. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Ambiq Micro
Yet despite these upgrades, the analysts cut their price target 21% to US$66.71, implicitly signalling that the ongoing losses are likely to weigh negatively on Ambiq Micro's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Ambiq Micro at US$75.00 per share, while the most bearish prices it at US$52.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Ambiq Micro's rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 26% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ambiq Micro is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ambiq Micro going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Ambiq Micro (1 is significant) you should be aware of.
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