Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7380
    -0.0007 (-0.09%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    94,641.17
    -967.73 (-1.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,379.46
    -20.06 (-0.12%)
     
  • VOLATILITY

    13.01
    0.00 (0.00%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • CAD/EUR

    0.6847
    +0.0004 (+0.06%)
     

Lesser-known tech companies driving well-known tech companies to report

Earnings season has more or less come to an end, but this week we get results from a couple of less-known technology companies that are involved in making well-known products.

AMBARELLA

Semiconductor company Ambarella (AMBA) reports Tuesday after the closing bell. The Estimize community is expecting earnings per share (EPS) of $0.61, 4 cents higher than the Wall Street consensus, which would make for the second consecutive quarter of triple-digit profit growth on a year-over-year basis. Ambarella is best known for making the chips that go into GoPro (GPRO) cameras, one of its top customers. GoPro is a good customer to have; they’ve posted triple-digit EPS growth for the last four quarters and recently announced exciting new endeavors which include building a quadcopter drone and a virtual reality camera array. For some, the stock has risen too rapidly this year. Ambarella shares are up 80% in 2015 alone, but despite a rich valuation, current market dynamics have been favorable to growth stocks with high valuations.  And many analysts, such as those at KeyBanc and Stifel Nicolaus, are only raising price targets, despite the fact that the stock is nearing 52-week highs.

Get the Latest Market Data and News with the Yahoo Finance App

VERIFONE

VeriFone Systems (PAY) is another tech company out with results this week. The Estimize community is looking for EPS of $0.44, a penny higher than the Street and three cents higher than company issued guidance. Revenues expectations of $491.6M are also higher than estimates from Wall Street and company guidance. VeriFone produces electronic payment terminals and makes money from customer transactions. The company is poised to do well for the rest of the year as demand rises for Europay, Mastercard, Visa (EMV) terminals and as mobile payments increase in popularity. Newer credit cards have EMV chips that help protect a holder from fraud. In October, all merchants are required to use the latest payment terminals that support EMV chips as opposed to the older systems that only read magnetic strips. Those that don’t will be liable for fraud that takes place in point-of-sale transactions, a liability previously taken on by credit card issuers.

ADVERTISEMENT

Near field communication, the technology that allows two devices to communicate via radio waves when in close vicinity, is another area that will benefit the company. This is the technology that enables mobile wave-and-pay phone payments at merchant registers through apps such as Google Wallet and Apple Pay.

More from Yahoo Finance
Can Stephen Curry help Under Armour steal Nike's thunder?
Jobs, Xiaomi and the Rolling Stones: What to watch next week
Dimon in the rough and tumble: JPMorgan’s boss fires back