GoPro Results Miss Expectations; Shares Slide
October 28 2015 - 5:20PM
Dow Jones News
GoPro Inc. on Wednesday posted revenue and profit that fell
short of Wall Street expectations, adding to concerns over the
wearable-camera company's business.
Shares of the company tumbled 13% in after-hours trading.
GoPro's shares have been battered since August amid concerns
that the wearable-camera market is drying up. Shares closed at
$30.30 a share on Wednesday, down 52% this year.
In the period ended Sept. 30, GoPro's revenue grew 43% to $400.3
million, but it fell well short of the $433.6 million in revenue
analysts had expected, according to Thomson Reuters.
In a statement, Chief Executive Nicholas Woodman said "business
in the third quarter was clearly more difficult than
anticipated."
Sales growth in the quarter was likely damped by the timing of
product releases. Last year, GoPro debuted new cameras in the third
quarter; this year, it introduced new devices in the second
quarter.
The San Mateo, Calif., company is also facing new competition
from traditional camera makers like Sony Corp. and new entrants
such as Chinese smartphone maker Xiaomi Corp. In response, GoPro is
attempting to diversify, including plans to soon release a consumer
drone.
In all, GoPro posted a profit of $18.8 million, or 13 cents a
share, up from $14.6 million, or 10 cents a share, a year
earlier.
Excluding special items, per-share earnings were 25 cents.
Analysts had forecast 29 cents a share in earnings.
The company also said Wednesday that its board has authorized a
$300 million share buyback program to begin in the current
quarter.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 28, 2015 17:05 ET (21:05 GMT)
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