Why Ambarella, Inc. Stock Plunged Today

Shares of Ambarella Inc. (NASDAQ: AMBA) were down 21.2% as of 11:30 a.m. EDT Friday after the video processing chip company announced solid fiscal second-quarter 2018 results, but reduced its full-year revenue outlook.

Ambarella's revenue for the quarter climbed 10% year over year to $71.6 million, driven by growth from the IP security and OEM automotive markets, while adjusted gross margin fell 410 basis points year over year to 63%. Both figures compared favorably to Ambarella's latest guidance, which called for revenue of $69 million to $72 million and adjusted gross margin of between 62% and 63.5%.

On the bottom line, that translated to adjusted net income of $16.5 million, or $0.48 per share, which was down from $0.54 per share in last year's fiscal Q2, but $0.04 above consensus estimates.

Source: Fool.com