GoPro stock jumps after earnings suggest strong start for cheaper camera
GoPro Inc. shares rocketed higher in after-hours trading Thursday afternoon, after the company found some success with a new low-cost action camera and beat expectations. GoPro reported a first-quarter net loss of $76.3 million, or 55 cents a share, on sales of $202.3 million, down from $218.6 million a year ago. After adjustments for stock-based compensation and other effects, GoPro claimed a loss of 34 cents a share, an improvement from last year's adjusted loss of 44 cents a share. Analysts on average expected an adjusted loss of 38 cents a share on sales of $182 million. While revenue still declined year-over-year, unit sales increased 3%, suggesting a strong early showing for the lower cost Hero camera GoPro recently introduced to the market. "Initial demand for Hero is promising and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter," GoPro Chief Executive Nicholas Woodman said in Thursday's announcement. GoPro shares jumped as much as 9.7% immediately after the numbers hit, following a 0.2% decline to $4.96 in the regular session. The stock has fallen 34.7% so far this year, while the S&P 500 index has declined 1.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.