GoPro is crashing after reporting earnings that missed expectations by a mile
(Nick Woodman, the founder of extreme sports camera maker GoPro, attends the Allen
GoPro shares plunged 22% in after-hours trading on Thursday after the company reported quarterly earnings results that were worse than analysts had expected.
The shares fell after a trading halt requested before the earnings announcement.
The maker of action cameras said its net income dropped 330% from last year and swayed to a loss of $84 million, or -$0.60 per share. Analysts had forecast a $0.36 loss according to Bloomberg.
GoPro's sales totaled $241 million, down 40% year-on-year, and short of the estimate for $313 million.
These numbers reflect weak demand for GoPro's handy cameras. In September, the company entered a new product category altogether and launched its first drone called Karma.
Its guidance for fourth-quarter revenue and earnings per share was also weaker than expected. The fourth quarter is crucial for makers of consumer electronics because their products are popular gift items during the holidays.
"Looking forward to 2017, we expect to return to profitability, driven by the strength of our new products, double digit revenue growth and annual operating expenses of approximately $650 million," said CEO Nick Woodman in the earnings statement.
The stock fell 7% in regular trading before the market closed. It slid alongside Fitbit, which cut its full-year forecast Wednesday and said it expected a slowdown in growth. Fitbit plunged 30%.
GoPro shares lost 33% year-to-date through Thursday's market close.
(Markets Insider)
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