Ambarella stock drops 15% after disappointing outlook

Ambarella Inc.
AMBA,
+4.48%
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,
+1.45%,
and a 33.2% rally by the tech-heavy Nasdaq Composite Index
COMP,
+1.74%.