Categories AlphaGraphs, Earnings, Technology

GoPro stock falls as Q2 earnings fell short of expectations

GoPro’s (NASDAQ: GPRO) stock is down above 4% as the second quarter results fell short of street estimates. The company’s share price has increased 25% this year aided by better first quarter results. However, it’s still a far cry from the IPO debut price of $24 in 2014.

Headline Numbers 

GoPro revenue rose 3% to $292 million, which fell short of $302.2 million expected by the street. However, the top line metrics was in line with the prior guidance provided by the firm of $285-305 million. Adjusted EPS was 3 cents per share, 1 cent lesser than the consensus expectations. The company’s prior guidance was in the range of $0.00-0.06.

GoPro Q2 2019 earnings

The company shipped 1.08 million camera units, up 1% over prior year period. According to NPD Group, in the US, HERO7 Black is the number one selling camera by volume. HERO7 line plus its spherical camera and Fusion were the top-four selling cameras in action camera category.

On the full-year outlook, the camera maker is anticipating top line to grow at 7-10% compared to 9.4% growth estimated by the street. Adjusted earnings is expected in the range of 25-45 cents per share by the firm whereas analysts are forecasting 38 cents per share for the fiscal 2019 period.

Commenting on the Q2 performance CEO Nick Woodman stated, “Given our continued sell-through momentum, channel inventory levels and the strength of new products slated for later this year, we are raising our outlook for the second half of 2019.”

GoPro Plus

GoPro has restructured itself to focus on the core action camera business. It has also introduced a new subscription based service called GoPro Plus which costs $5 per month to its users. As of July 31, Plus subscribers surpassed 252,000, up 50% over last year and surged 15% over first quarter.

Read: First Solar Q2 earnings miss due to tough macros

Improving Margins

On an adjusted basis, gross margins came in at 35.8% compared to 30.8% in the prior year quarter. The improvement in margins was aided by reduction in operating expenses. Non-GAAP operating expenses decreased 6.7% primarily from the sales and marketing front.

Looking Ahead

The company needs to make sure its core products and new launches are attuned to customer expectations, without compromising on the profitability. Even though the Fusion 360 and HERO7 cameras are doing well in the market, it is facing tough competition from its peers launching products at lower price points, which puts pressure on margins.

GoPro is trying hard to retain its mojo to build a profitable and sustainable business. With increased competition and its track record, it’s not going to be an easy ride for the camera maker.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

ISRG Earnings: Intuitive Surgical Q2 profit jumps on strong revenue growth

Medical device company Intuitive Surgical, Inc. (NASDAQ: ISRG) announced operating results for the second quarter of 2024, reporting higher revenues and adjusted profit. Second-quarter net profit, excluding one-off items, climbed

Infographic: Halliburton (HAL) reports strong earnings growth for Q2 2024

Energy giant Halliburton Company (NYSE: HAL) Friday announced financial results for the second quarter of 2024, reporting a double-digit increase in net profit. Second-quarter revenue edged up 1% annually to

AXP Earnings: Key quarterly highlights from American Express’ Q2 2024 financial results

American Express Company (NYSE: AXP) reported its second quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, were $16.3 billion, up 8% from a year ago, driven

Comments

  1. Pingback: fue university
  2. Pingback: Dental Workshops
  3. Pingback: Dental hygiene
  4. Pingback: fue
  5. Pingback: الاقتصاد
  6. Pingback: Economics
  7. Pingback: butterfly muscu
  8. Pingback: gymnase extérieur
  9. Pingback: Fiverr Earn
  10. Pingback: Fiverr Earn
  11. Pingback: glucotrust
  12. Pingback: fiverrearn.com
  13. Pingback: fiverrearn.com
  14. Pingback: aussie doodle dog
  15. Pingback: exotic bully
  16. Pingback: isla paddle board
  17. Pingback: bitcoin
  18. Pingback: future university
  19. Pingback: wix seo
  20. Pingback: Fiverr
  21. Pingback: six sigma
  22. Pingback: Piano disposal
  23. Pingback: Piano transport
  24. Pingback: Classic Books 500
  25. Pingback: FiverrEarn
  26. Pingback: FiverrEarn
  27. Pingback: Coach
  28. Pingback: FiverrEarn
  29. Pingback: Sefton Playclub
  30. Pingback: pupuk anorganik
  31. Pingback: pupuk organik cair
  32. Pingback: partners
  33. Pingback: duotrim reviews
  34. Pingback: Tips
  35. Pingback: FiverrEarn
  36. Pingback: live sex cams
  37. Pingback: live sex cams
  38. Pingback: FiverrEarn
  39. Pingback: FiverrEarn
  40. Pingback: french bulldog
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: pearl
  46. Pingback: FiverrEarn
  47. Pingback: cheap sex cams
  48. Pingback: fullersears.com
  49. Pingback: live sex cams
  50. Pingback: live sex cams
  51. Pingback: marketplace
  52. Pingback: rare breed-trigger
  53. Pingback: 늑대닷컴
  54. Pingback: Slot Viking
  55. Pingback: superslot
  56. Pingback: allgame
  57. Pingback: 918kiss
  58. Pingback: หวย24
  59. Pingback: Sensitive skincare
  60. Pingback: pg slot
  61. Pingback: carte uno reverse
  62. Pingback: evisa
  63. Pingback: 44-40 ammo
  64. Pingback: ozempic
  65. Pingback: itsMasum.Com
  66. Pingback: Skywhip tanks
  67. Pingback: chat with people
  68. Pingback: itsmasum.com
  69. Pingback: joker gaming
  70. Pingback: free webcam sex
  71. Pingback: cheap cam girls
  72. Pingback: Kampus Islami
  73. Pingback: 918kiss

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top