When GoPro reported third quarter results on November 1, 2018, the company beat the bottom line and topline views. Despite the better-than-expected Q3 results, shares plunged 24% in the next day’s trading. GoPro reported a loss of 4 cents per share on revenue of $286 million for the third quarter. Analysts had expected the loss to be 6 cents per share and revenue to be $271.9 million.
For the fourth quarter of 2018, the company had guided GAAP EPS to be in the range of $0.09 to $0.18 and non-GAAP EPS in the range of $0.21 to $0.31. Revenue was touted to be $370 million, plus or minus $10 million.
GoPro also estimated sell-in to be about 1.4 million units and sell-through to be about 2 million units for the fourth quarter. Sell-in was estimated to be about 4.3 million units and sell-through to be about 5 million units for 2018.
The San Mateo, California-based company had already cautioned that the initiation of more promotions during the holiday quarter will have a negative impact on the Q4 revenue and margin. However, GoPro expressed its confidence about achieving profitability in Q4 and the second half. Investors hope that GoPro will bounce back in 2019.
In December, GoPro stated that it is planning to move some of its camera production out of China to avoid new tariffs. The company didn’t reveal the new location for its camera production.
On average, analysts recommend to “Hold” GoPro shares and the stock has a 12-month price target of $6.67. GoPro stock was trading flat during Tuesday midday.