GoPro shares dive, recover following dismal earnings report
It's been a tough year for the action cam maker, as the company reports a third-quarter loss of 60 cents a share on $241 million in revenue -- much worse than analyst expectations.
GoPro is hoping that new products, including its drone, will make a difference this quarter.
Alongside a poor third-quarter earnings report on Thursday, action-camera maker GoPro lowered its revenue guidance as it moves into the holiday-shopping season.
The quarterly results, which included a 40 percent drop in revenue from the same period a year ago, were worse than analysts had expected. The company showed a loss of 60 cents a share on $241 million in revenue. Analysts were expecting a loss of 35 cents per share on $319 million in revenue. GoPro also dropped its full-year revenue guidance to $1.25 billion to $1.3 billion, down from $1.35 billion to $1.5 billion.
Shares dropped in after-hours trading Thursday but headed back up Friday morning toward the previous closing price. GoPro shares have dropped about 40 percent since this time last year.
The disappointing numbers show waning consumer interest in GoPro's line of action cameras, although sales of the new Hero 5 camera and the company's first drone called Karma, both released in October, weren't factors into the third-quarter results.
"Looking forward to 2017, we expect to return to profitability, driven by the strength of our new products, double digit revenue growth and annual operating expenses of approximately $650 million," said CEO Nick Woodman in a statement.
First published, November 4 at 7:45 a.m. PT.
Update, 9:40 a.m. PT: More earnings data and stock information has been added.