GoPro Inc. swung to some loss in the fourth-quarter and forecast sales within the first quarter which were below analysts’ projections after a disappointing end to 2015 as its latest cube-shaped action camera failed to inspire sales at Christmas. The organization also said chief financial officer Jack Lazar is stepping down.
For the present quarter GoPro said hello sees revenue of US$160 million to US$180 million. That compares with analysts’ average estimates of US$287.3 million.
The maker of wearable video cameras posted a loss of US8 cents a share, excluding certain costs, in the fourth quarter. Analysts on average were projecting a profit of US1 cent, according to data published by Bloomberg. Revenue was US$436.6 million, compared with the typical estimate of US$434.9 million following the company announced preliminary results Jan. 13, and said hello would eliminate seven per cent of its workforce.
Shares in GoPro fell more than 9 per cent to US$9.65 in extended trading on the Nasdaq. The shares rose 4.6 percent Wednesday to US$10.71 at the close of trading in Ny, prior to the results were released.
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GoPro’s sales took a success after it needed to twice lower the cost on its latest model, the Hero4 Session. When GoPro dropped the price to US$200 in December in the US$400 introductory price in July, excess inventory had already piled up, hurting margins within the fourth quarter.
GoPro “made some mistakes” using the Hero4 release, said Jeff Brown, a business spokesperson, in an interview last month. The merchandise was introduced too far ahead of the holidays there was hardly any marketing support, he explained.
“At a cost of just US$199, we expect the device to weigh on GoPro’s top-line performance and margin structure with the first 1 / 2 of 2016 a minimum of,” said Michael Pachter, an analyst at Wedbush Securities Inc., inside a note to clients ahead of the results.
Shares of San Mateo, Calif.-based GoPro have fallen 80 per cent in the last year because the company struggled to convince investors it can innovate beyond the flagship Hero video cameras, made famous by stunning footage from adventure athletes to amateur filmmakers. But stockholders are concerned about rising competition from smartphones and camera-equipped drones.
GoPro is rolling out its own drone, named Karma, in March and CEO Nick Woodman is attempting to improve the company’s editing software and capabilities and make a media company around all the video content users post online.
“The bear case is that the market growth has peaked and may be negative for a while. On the other hand, it seems like a great number of people think that something totally new can reinvigorate consumer interest,” said Robert Stone, an analyst at Cowen & Co., who has a market perform rating on GoPro. “They require something to get people excited again.”
On Tuesday GoPro said it is going to be live-streaming the PGA Waste Management Phoenix Open, utilizing a transmitter that broadcasts the action from the camera. Called HEROCast, we’ve got the technology has been used before by ESPN and the Nhl.