Here’s Why GoPro Shares Are Soaring Today

GoPro Inc (NASDAQ:$GPRO) is an iconic action camera maker, and the company’s shares soared a whopping 17% as of Thursday morning trading.

While the company has seen a long-held loyalty in consumers based on its proprietary body-mounted point-of-view cameras, sales have taken a beating in recent quarters after a series of production issues and delays.

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GoPro initially expected to report an adjusted loss in the third quarter, however strong demand for its cameras and drones to reduce inventory has led a profitable speculation on an adjusted basis in the third quarter. The company is also on track to launch the Hero 6, the latest edition of its flagship action cameras, and the new Fusion 360 camera by the holiday season.

However, the profitability of the company hinges on the timely production and release of the Hero 6. As a reference, production issues with the Hero 5 drastically dented sales, dragging down the company’s stock.

GoPro expects to see a third-quarter revenue and gross margins to be at the high end of $290 million and $310 million and 36-38%, respectively.

Executive of the company Nick Woodman stated last month that the company expects low double-digit revenue growth for 2017, profitable for the year.

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