: Ambarella stock drops 15% after disappointing outlook

Ambarella Inc. AMBA shares dropped in the extended session Tuesday after the video chip maker’s forecast fell well short of Wall Street expectations. Ambarella shares fell as much as 15% after hours, following a 4.5% gain in the regular session to close at $75.78, after the Santa Clara, Calif.-based company forecast revenue between $48 million and $52 million in the third quarter, while analysts surveyed by FactSet had forecast revenue of $67.9 million. Ambarella reported a second-quarter loss of $31.2 million, or 79 cents a share, compared with a loss of $23.7 million, or 62 cents a share, in the year-ago period. The adjusted loss, which excluded stock-based compensation expenses and other items, was 15 cents a share, compared with 20 cents a share in the year-ago period. Revenue fell to $62.1 million from $80.9 million in the year-ago quarter. Analysts had forecast an adjusted loss of 20 cents a share on revenue of $62 million. As of Tuesday’s close, Ambarella shares are down 7.8% on the year, versus a 17.1% year-to-date gain by the S&P 500 index SPX, and a 33.2% rally by the tech-heavy Nasdaq Composite Index COMP.

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