GoPro Inc. shares rose more than 7% in trading after hours on Thursday after the action camera maker made a positive profit and earnings.
The company earned second-quarter net income of $ 17.0 million, or 10 cents per share, compared to a loss of $ 51.0 million, or 34 cents per share. Custom based GoPro
earned 12 cents per share, but a year ago lost 20 cents per share. Analysts monitored by FactSet expected adjusted earnings per share of 4 cents.
GoPro’s revenue rose $ 134 million to $ 250 million a year ago, while analysts predicted $ 232 million. Revenue from GoPro’s own site increased 48% to $ 88 million and accounted for 35% of total sales.
Cameras with retail prices of at least $ 300 accounted for 94% of camera revenue in the quarter.
“Strong implementation further demonstrated the benefits of the strategic changes in our business to the consumer-focused, order-focused model,” said Brian McGee, CFO. “We believe that the changes in our business will continue to bring a more predictable and profitable GoPro.”
The company ended the quarter with 1.16 million customers, growing by 23% in a row. GoProl has 100,000 paying subscribers for its Quiki app, which allows people to Manage and edit your photo and video libraries.
In the third quarter, GoPro expects earnings of $ 285-295 million and adjusted earnings per share of 17-21 cents, according to notes prepared by GoPro’s earnings call, which it previously released.
“We are opposed to the enthusiasm for July / August 2020, where markets opened prematurely in North America and Europe,” McGee said in those remarks.
Analysts monitored by FactSet expected earnings of $ 296 million and adjusted earnings per share of 17 cents.
McGee also noted that the company’s outlook suggests that units sold will fall by about 10% year-on-year.
“We believe that there is a strong demand for our cameras at all price points; However, due to supply constraints and rising component prices, we prioritize the production of our premium camera products, ”he said. “As a result, the volume of our lower-end cameras will decrease significantly over the year.”
The company now expects full-year revenue growth of 25% to 30%, compared to the previous 20% to 25% growth.
GoPro shares have fallen 4.9% over the last three months than the S&P 500
has risen 6.3%.