GoPro Inc. swung to a loss in the second quarter, but results still beat expectations, suggesting that aggressive price cuts on its flagship camera are paying off.

GoPro, which makes action cameras popular among adrenaline junkies, also said it expects to return to profitability in the fourth quarter, following the expected launch of its new camera, Hero5, and drone, Karma. For 2016, the company now sees revenue between $1.35 billion and $1.5 billion; analysts surveyed by Thomson Reuters saw revenue of $1.34 billion.

Shares of GoPro, which have fallen about 88% from their 2014 high, rose 2.4% to $11.85 in after-hours trading.

For the quarter ended June 30, GoPro posted a loss of $91.8 million, or 66 cents a share, compared with a year-ago profit of $35 million, or 24 cents a share. Excluding stock-based compensation and other items, the company reported a loss of 52 cents a share, down from year-ago earnings of 24 cents a share.

Revenue declined steeply to $220.8 million from $419.9 million a year ago.

Analysts had projected a per-share loss of 58 cents, excluding certain costs, and revenue of $194 million, according to a survey of analysts by Thomson Reuters.

The loss at GoPro wasn't unexpected: it hasn't released a new camera in a year, when it bungled the release of its Session camera last July. GoPro was forced to slash the price of the Session by half after initial sales flopped.

GoPro faces pressure to demonstrate there is a more mainstream market for its cameras beyond its adrenaline-addicted core. But as it tries to go more mainstream, it faces competition from do-it-all smartphones from tech giants such as Apple Inc. and Samsung Electronics Corp.

GoPro has said it plans to release a new camera in the second half of the year, which analysts believe could revive sales. The company also plans to launch a drone around the holidays, which it has delayed from the first half of the year.

Write to Georgia Wells at Georgia.Wells@wsj.com

(END) Dow Jones Newswires

July 27, 2016 16:55 ET (20:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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