Go Pro No Hero, As Share Value Plunges
GoPro who are desperately trying to make a comeback has seen their share value plunge 14 percent overnight.
Despite a new generation of cameras and an expansion of their accessories range the US Company who was once a major revenue earner for Australian CE retailers has not been able to stop a slump in sales.
The plunge in value came after the action-camera maker delivered a disappointing outlook despite reporting its first quarterly profit in two years.
GoPro is determined to stay relevant, even as companies like Google roll out their own cameras that step into GoPro’s once-secure territory claims management.
GoPro recently released an US$800 camera-equipped drone, and will be releasing its first 360-degree camera later this month.
CFO Brian McGee attributed the not-so-bright outlook to the launch of the Hero6 camera, which he said cannibalised the sales of the Hero5.
GoPro will need to slash prices on the Hero5, which had already struggled with production delays, to move backed-up inventory during the peak holiday season in markets like Australia.
GoPro reported revenue of $330 million, surpassing expectations of $313.8 million, and representing year-over-year growth of 37 percent.
However, GoPro also admitted it now expects fourth-quarter earnings between 37 and 47 cents a share — well below the 57 cents a share Wall Street was expecting.