Go Pro Incorporated surpassed the expectations of the market
analyst on its second quarter report disclosed recently. The manufacturer of
action cameras posted a quarterly sales of $220.8 million, higher than the
expected $194 million by the Wall Street analysts.
Though the stock beat the market expectations, it was till
down by 47 percent compared to its quarterly sales a year ago. It was down by
52 cents per share, lower than the forecasted 58 percent per share. The company did not release its
third quarter forecast, however, experts believed it might lose $26 cents per
share for the next quarter.
Meanwhile, Go Pro announced a full year revenue of $1.35
billion to $1.5 billion for the rest of the year. The estimates of the company
was contradicted by the market analysts with their $1.34 billion sales
prediction this year.
Go Pro Product
Refresher
GoPro founder and CEO Nick Woodman sounded optimistic in the
trend of the company for the rest of 2016.“GoPro is well-positioned for the
second half of the year. We now have a simple product line, a clean retail
channel and clear indications of strong consumer demand.” Woodman said.
“In the second quarter, revenue was up 20% sequentially to
$221 million. We shipped 759,000 units, an 8% increase quarter-over-quarter,
and our average selling price increased 11% sequentially. Second quarter
revenue was down 47% year-over-year, largely due to continued channel inventory
reductions of nearly 35% sequentially.”
In the middle of the strong competition with Garmin and
Sony, Go Pro indicated its intention to become net income profitable on a GAAP
and non-GAAP in the last quarter of 2016. Further, the company aims to go away
from costly inventory as much as possible before the release of the new line of
products in the fourth quarter.
Reports indicated that the company is gearing for its Hero 5
camera family and Karma flying camra drone soon. Go Pro clarified the details
of these producr refresh it said “Hero 5 and Karma will contribute to the
largest introduction of products in our history, all in time for what we
believe will be GoPro's most exciting fourth quarter, ever -- a quarter where
we expect to return to profitability.”
Go Pro Stock Performance
Shares of Go Pro
Incorporated advanced 1.21 percent in the ore market session and settled at
$11.57, jumping 2.21 percent. Currently, the American technology company has a market
capitalization of 1.59 billion after disclosing the second quarter earnings
report.
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