On Thursday, GPRO stock plunged 19% after GoPro Inc. (NASDAQ:GPRO) reduced its revenue and profit estimate for the latter half of 2019 because of production delays of its new Hero8 Black cameras.
GoPro to Commence Shipping of Latest Products in Q4
GoPro launched two new cameras on Tuesday, including an upgraded version of the “HERO” line. However, the company pushed back the expected date it will commence shipping the cameras to the fourth quarter and not in the third quarter as indicated earlier. The action camera maker cited production delays as the reason.
The CEO of GoPro, Nick Woodman, stated that the shift in shipment into the fourth quarter means associated revenue from the shipments will also change. He said the company expects a revenue shift of around $30 million or approximately 100,000 units. He added that the delays had nothing to do with the decision to move its US-bound production to Mexico from China.
The company now expects its second-half 2019 revenue to range from $680 million to $715 million, which is around 6% to 9%. Earlier, the company had projected its revenue to grow between 9% and 12%. The company has also reduced its adjusted profit between $0.33 and $0.39 per share down from $0.37 to $0.49 per share.
At the time of writing, GPRO stock is down 21% at $4.05.
GoPro has Faced Production Delays Before
In the past, GoPro has faced production challenges that prompted delays in shipments of its leading products. In 2016, GroPro recalled its drone products following problems with power, where some units lost power while in flight. The company exited the drone market last year.
GoPro has been trying to differentiate its premium products with advanced cameras through spherical camera fusion and the HERO product line. The company launched some of its latest advanced products as it looks to attract customers.
The Hero8 Black, launched on Tuesday, goes for $399 while the latest dual-lens GoPro MAX costs $499. The company is also offering a range of modular accessories it calls Mods, which is an extension that can be added to the GoPro camera to enhance functionality.
GPRO stock has corrected over 45% since early May.
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