Friday, 6 February 2015

GoPro shares sharply reverse, drop 15% on guidance

A GoPro Hero 4 camera is displayed at the 2015 International CES in January.


Andrew Uerkwitz, Oppenheimer, discusses GoPro's quarterly numbers and the resignation of company's COO.</p>
GoPro beat Wall Street's forecasts on Thursday as revenue more than doubled from a year earlier, sending shares as much as 14 percent higher in after-hours trading.
However, the stock erased those gains, falling some 15 percent, after it projected unexpectedly weak first-quarter profit and announced the surprise departure of one of its executives.
During its earnings call, the company said it sees first-quarter earnings coming in between 15 and 17 cents per share. Wall Street had expected the camera maker to
post earnings 17 cents per share, according to a consensus estimate from Thomson Reuters.
Read MoreOuch! Pandora skids more than 20% on revenue miss
Separately, GoPro Chief Operating Officer Nina Richardson has resigned, the company disclosed in a regulatory filing. Her exit is effective Feb. 27.
The wearable camera maker reported fourth-quarter earnings of 99 cents per share, up from 33 cents a share a year earlier. Revenue soared 75 percent to $633.90 million, from $361.50 million.
The company said it shipped 2.4 million capture devices during the quarter and 5.2 million for the full year.
The stock was last down nearly 15 percent in extended trading.
GoPro's cash, cash equivalents and marketable securities surged to $422.3 million, up 316 percent from Dec. 31, 2013.

"We're feeling good. GoPro was one of the best-selling products this holiday, selling-in an average of 1,000 units per hour for the entire quarter," GoPro CEO Nicholas Woodman said. "With this many new recruits to the GoPro movement, we're sure to see some incredible content in 2015."
Read MoreIt was a GoPro Christmas: GoPro CEO

Analysts had expected GoPro to report earnings of 70 cents per share on revenue of $580 million, according to a consensus estimate from Thomson Reuters.
Getty Images
A GoPro Hero 4 camera is displayed at the 2015 International CES in January.
GoPro shares have endured turbulence since the company went public in late June. After pricing at $24 per share, the stock floated to a high of $98 per share in October, only to give back most of its gains to trade in the mid-$50s.
Last month, Woodman touted GoPro's prospects for 2015. The company enjoyed strong holiday sales and international growth numbers, he told CNBC.
"For us and our customers and our retailers, it was a GoPro Christmas. It was the best new product introduction that we've ever had," Woodman told CNBC.
GoPro has taken steps to become a more diverse media company beyond its camera offerings. It announced on Thursday that it will launch a channel on the Roku streaming platform.
In a partnership with the National Hockey League announced last month, players have started wearing GoPro cameras during games to showcase new angles.

No comments:

Post a Comment