** charts before earnings **
** charts after earnings **
GoPro (NASDAQ:GPRO) sports camera chipmaker Ambarella reported Q2 revenue late Tuesday that beat Wall Street forecasts, and earnings more than doubled.
But Ambarella (NASDAQ:AMBA) stock continued a nose-dive in after-hours trading Tuesday, after CFO George Laplante guided to flat wearable camera revenue for Q3 during the company's earnings conference call. And the company's fiscal Q3 revenue outlook lagged analyst estimates. Ambarella stock was down 9% after hours, after falling more than 6% in Tuesday's rough regular session.
In Q2, Ambarella completed its $30 million acquisition of privately held VisLab, an Italian company specializing in autonomous vehicles. With the acquisition, Ambarella took on 29 new researchers and gained more than 20 years' experience in the industry, Wang said.
Santa Clara, Calif.-based Ambarella is a chip leader in the fast-emerging drone market. Last week, investors "overreacted," according to one analyst, when rumors that competitor Qualcomm (NASDAQ:QCOM) might be preparing to enter the market for chips used in flying cameras, or drones, helped sink Ambarella's stock to a nearly four-month low.
That analyst said neither Qualcomm nor Sony (NYSE:SNE) — which also recently announced a drone program — could compete with Ambarella's technology.
Investors interpreted the comments from Ambarella management to mean that GoPro camera demand is slowing down.
GPRO daily (after AMBA earnings)
© Artremis / Eva Sawicka (9/1/15)
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