The GoPro earnings report for Q2 was released today, far exceeding analysts’ estimates.
The company showed there was strong demand for its signature action-adventure camera that pushed the company to its Q2 growth and profits. GoPro’s revenue was $283 million in the second quarter of this year, up 40 percent from the previous period.
Analysts predicted estimates of $270 million for the company. The company reported a loss of $37 million, or a loss of $0.27 a share. Analysts anticipated the loss to be around $0.32 a share.
GoPro’s Past Struggles
GoPro debuted back in 2014 and quickly became a fan-favorite. However, the hot small, cube-shaped action camera quickly faced increasing competition. In 2016, GoPro launched its drone called Karma but had to pull the plug on it a year later.
Last year during the holidays, GoPro had to slash the price of its older Hero5 black camera to try and gain revenue. Since its peak back in October of 2014, the company’s stock has fallen nearly 94 percent.
The company “[would] have to produce several quarters of solid earnings to win over investors,” analysts from Wedbush Securities wrote in a note before the GoPro earnings report was released for Q2.
Chief Financial Officer of GoPro, Brian McGee, told investors in a conference call that his company projects to make $260 – $280 million in Q3 and $380 – $400 million in Q4 of 2018. A company representative told Bloomberg that the company’s inventory is currently at its lowest since the second quarter of 2014.
Currently, the company is making additional revenue from its new services designed to make using its hardware easier with cloud backup. GoPro also offers its ‘Plus Subscription’ members discounts on accessories and support for sharing photos and videos.
GoPro Stock Movement (NASDAQ:GPRO)
According to Yahoo Finance, since the Q2 earnings were released, GoPro Inc. is currently trading at its highest price in six months. At press time, GPRO is trading at $7.04 a share, up $1.05 (+17.53%).
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