Ambarella stock rallies after Q2 profit, sales top views

Shares of Ambarella Inc. rose more than 10% in the extended session Thursday after the chip maker reported an adjusted fiscal 2020 second-quarter profit and sales above Wall Street expectations. Ambarella said it lost $10.2 million, or 31 cents a share, in the quarter, compared with $6.9 million, or 21 cents a share, in the year-ago period. Adjusted for one-time items, the company earned $7.3 million, or 21 cents a share, compared with $8.5 million, or 25 cents a share, a year ago. Revenue fell 10% to $56.4 million, compared with $62.5 million a year ago. Analysts polled by FactSet had expected adjusted earnings of 2 cents a share on sales of $52 million. Ambarella said it expects revenue between $63 million and $67 million for the third quarter, adding its "confidence" in its outlook has increased despite geopolitical uncertainty. "Most importantly, we continue to demonstrate strong progress on our strategy to transform from a pure video processing company to an artificial intelligence ('AI') video company," Chief Executive Fermi Wang said in a statement. Ambarella shares ended the regular trading day up 3.1%.

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