Ambarella Follows a Strong Quarter With Disappointing Guidance (Again)

Ambarella Follows a Strong Quarter With Disappointing Guidance (Again)

Ambarella Inc. (NASDAQ: AMBA) released strong fiscal second-quarter 2018 results on Thursday after the market closed, with both revenue and adjusted gross margin arriving above the midpoints of the company's latest guidance. And while Ambarella also offered better-than-expected guidance for the fiscal third quarter, it simultaneously reduced its outlook for the full year.

So after initially climbing as much as 3%, shares of the video processing chip specialist plunged in after-hours trading. Let's take a closer look at what Ambarella accomplished over the past few months, as well as what investors can expect from the company going forward.

Affordable drones are crimping growth in the premium drone market for Ambarella. Image source: Getty Images.

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Source: Fool.com