GoPro Hits All-Time Low Following Q3 Earnings Report
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Shares of GoPro Inc (NASDAQ: GPRO) dipped more than 14 percent in after-hours trading after the company reported weaker-than-expected results for the third quarter on Wednesday.
The San Mateo, California-based company reported quarterly net income of $18.8 million, or $0.13 per share, up from $14.6 million, or $0.10 per share, in the year-ago quarter. Excluding one-time items, the company's earnings surged to $0.25 per share from $0.12 per share.
Its revenue surged 43 percent to $400.3 million. However, analysts were expecting earnings of $0.29 per share on revenue of $433.6 million.
The average estimate among 295 Estimize users was for earnings of $0.32 per share and revenue of $443.32 million.
Its gross margin expanded to 46.6 percent from 44.3 percent.
The company's board authorized a repurchase up to $300 million of Class A capital stock.
"I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated," said GoPro Founder and CEO, Nicholas Woodman. "GoPro is entering the holidays with an industry-leading lineup backed by great software solutions and a globally-recognized brand. We are excited about our business and the investments we continue to make to scale GoPro into its next phase as a product, software and entertainment company."
GoPro shares fell 14.63 percent to $25.79 in the after-hours trading session.
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