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Ambarella shares pop after Q1 results beat, stock buyback

Ambarella processing chip.
Source: Ambarella
Ambarella processing chip.

Shares of Ambarella rose about 9.3 percent Friday on the heels of better-than-expected quarterly results.

The supplier of image processing chips posted Thursday adjusted fiscal first-quarter earnings of 34 cents a share on revenue of $57.2 million. Analysts polled by Reuters expected Ambarella to report adjusted earnings of 28 cents a share on revenue of $57 million.

Ambarella's board also announced the approval of a $75 million stock repurchase program, which will run for six months starting in fiscal second quarter of 2017.

"While near term headwinds continue in the wearable sports camera market, and we expect some adverse impact to our business caused by the disruption in supply of Sony image sensors to our customers as a result of the April 2016 Japanese earthquake, we remain confident of renewed revenue growth based on our technology leadership, product roadmap and the potential of our current and future markets, " CEO Fermi Wang said in a statement.

Despite Friday's gains, however, Ambarella's stock remained nearly 17 percent lower for the year and down 51 percent over the past 12 months.

AMBA 12-month chartSource: FactSet