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GoPro tumbles on lower-than-estimated quarterly results

GoPro suffers from lower demand for its recently introduced cameras and lack of new products for the holiday season.

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The recent advancements in video-shooting capabilities of smartphones, such as the iPhone 6 range, is likely eroding GoPro's consumer base.

GoPro (NASDAQ:GPRO) tumbled in pre-market trades, a day after the maker of wearable video cameras issued disappointing results.

The technology company reported lower-than-estimated profit and revenue in the third quarter amid growing concerns over the lack of new products for the holiday quarter.

Shares fell as much as 18% as of 8:47 a.m. in New York. The stock had lost more than half its value this year by the close of trading yesterday.

Net income increased to $18.8mln, or $0.13 per diluted share, in the September quarter, from $14.6mln, or $0.10 per diluted share, a year earlier, the San Mateo, California-based company said in a statement late on Wednesday.

Adjusted earnings were $0.25, below the $0.29 average estimate of 19 analysts polled by Capital IQ.

Third-quarter revenue increased 43% to $400.3mln year-over-year, but lagged behind the Wall Street consensus of $433.6mln.

The company suffers from lower demand for its recently launched flagship cameras.

Weaker-than-expected demand for the company’s Hero4 Session camera was due to its initial high price and fewer marketing campaigns.

Moreover, the recent advancements in video-shooting capabilities of smartphones, such as Apple Inc's iPhone 6 range, is likely eroding GoPro's consumer base.

For the current quarter, the company forecast adjusted profit of between $0.35 to $0.45 per share on revenue of $500mln-$550mln.

Analysts had predicted a profit of $0.82 per share on revenue of $690.5mln.

Quick facts: GoPro Inc

Price: 4.055 USD

NASDAQ:GPRO
Market: NASDAQ
Market Cap: $631.59 m
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