GPRO stock is gaining momentum in early trading on Friday after GoPro Inc (NASDAQ:GPRO) reported better than estimated earnings for the latest quarter.
Earnings season is now in full swing, and every other day, plenty of companies are declaring their quarterly earnings. Some companies have exceeded market expectations, while others have failed to do so. However, action camera manufacturer GoPro is definitely in the former category, as the company managed to surprise the market and beat analysts’ estimates in a key metric. Wall Street analysts had estimated that the company was going to generate 48 cents worth of non-GAAP loss per share, but GoPro surprised the market by limiting it to loss of 42 cents a share.
Here is a closer look at the company’s third-quarter financial results. While the company did manage to beat analysts’ estimates with regards to a non-GAAP loss per share, it actually deepened considerably from the prior-year period. In 2018, the loss per share stood at 4 cents, meaning the current level reflects a 950% rise, and the actual operating loss came in at $71.2 million.
Naturally, GPRO stock enjoyed a rally and climbed by as much as 7% at $4.76.
On the other hand, the revenues for the period stood at $285 million, which reflects a decline of as much as 54.1% from the prior-year period.
That being said, the company has actually upgraded its outlook for growth and profitability in the next year as well as in the full year. The Chief Executive Officer of GoPro, Nicholas Woodman, spoke about the earnings: “Third quarter results are above the guidance provided on October 2nd. We are reiterating our annual revenue outlook of six-to-nine percent growth, and increasing our profitability outlook for the fourth quarter and 2019.”
The change in outlook regarding the full-year performance is definitely a positive for investors, and it remains to be seen how GPRO stock performs over the coming days.
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