Advertisement

GoPro stock crashes more than 10% after failing to meet Wall Street’s expectations

Advertisement


GoPro today reported its fourth-quarter and year-end earning results. And they weren’t good. The stock is currently falling like a recalled GoPro Karma drone. It’s down 10 percent in after-hours trading.

The company reported $540 million in fourth-quarter revenue, with a net income loss of $.082 a share. That’s under what analysts expected. And the company didn’t fare much better in yearly reporting either, netting just $1,185 million in 2016, down 26.8 percent from 2015.

The company notes the $0.82 per share loss includes charges of $102 million for a full valuation allowance on U.S. deferred tax assets and nearly $37 million for restructuring costs.

GoPro’s stock is currently trading down more than 10 percent on the day. The stock previously saw modest gains in the early days of 2017 and had climbed 23 percent in January alone.

There are some bright spots for GoPro. The company notes that the previous quarter generated the second-most revenue in the company’s history and the new Hero5 Black was the best-selling digital imaging device in units and dollars. And just yesterday, the company relaunched the Karma drone that was previously pulled from the market.

The company’s brand continues to grow, too. GoPro notes that its Instagram following was up 53 percent year-over-year. That was fueled by a 245 percent increase in followers from outside the United States. Likewise, GoPro increased its social media views by 40 percent, netting 238 million views. YouTube alone saw an increase in views of 86 percent over 2015.

When I spoke with CEO Nick Woodman at CES 2017, he remained confident that GoPro had plenty of runway and urged investors and board members to hold tight. He admitted that following the company’s IPO his company made some bad bets trying to expand its business into media, but says he has since righted the boat. But when asked if he would ever step aside and let someone else lead the company, he didn’t completely dismiss the notion.



We are very happy for your visiting to this web page GoPro stock crashes more than 10% after failing to meet Wall Street’s expectations. We hope the contents of this article can give more information to you.
Thanks…!!! 🙂

The Source link of this post.