While many hoped that GoPro's efforts to turn around the company would continue with its third quarter results, Wall Street did not like what they saw, sending the stock of GoPro at 11% after closing hours.
GoPro beat expectations on both earnings and earnings per share, but it was the company's forward-looking outlook that led investors to dump the stock after the publication. GoPro has announced a turnover of $ 330 million for non-GAAP EPS of $ 0.15.
The company's action cameras said it was expecting its fourth quarter (which includes the holiday season) to generate between $ 0.37 and $ 0.47 profit. per share on a turnover of 470 million dollars. This did not go well with investors as analysts were expecting the company to earn $ 0.57 from $ 521.2 million.
"During the quarter, we generated $ 47 million in cash and gross margins were 40%." Year over year, we increased our revenue by 37% and significantly reduces our operating costs without impacting our track record, "said Nick Woodman, CEO of GoPro, in a statement." We launched our high-priced HERO6 Black with global shelf availability and strong acclaim by criticism. We are now focusing on consumer demand to meet our goal of double – digit revenue growth for the full year and non – GAAP profitability. "
The company announced its latest GoPro HERO6 Black flagship at an event in September and will launch a 360 camera at the end of November. Today, the company has also stated that its Karma drone is the No. 2 UAV in the United States at a price of $ 1,000 and up.
GoPro had a difficult year, but the last two quarters have largely painted a more optimistic picture for the camera company. The disconnect with the expectations of analysts for the fourth quarter puts a brake on this upward momentum despite the pace of the third quarter of the company.