GoPro Crushed After Issuing Lowered Guidance

GoPro Inc GPRO shares were crushed after hours, despite delivering a big third-quarter earnings beat.

The action-camera maker delivered third-quarter earnings of 15 cents per share, beating estimates by 12 cents.

The wasn't enough to overcome the weak fourth-quarter guidance, with EPS in the range of 37 cents-47 cents, well short of Wall Street's 56-cent estimate.

"GoPro has turned a corner, restoring growth and profitability to our business," said Founder and CEO Nicholas Woodman. "We are dedicated to growing as an innovative company, while being a vigilant steward of shareholder capital."

"During the quarter we generated $47 million in cash and gross margins were 40 percent. Year-over-year, we grew revenue by 37 percent and dramatically reduced operating costs without impacting our product roadmap. We launched our premium-priced HERO6 Black with global on-shelf availability and strong critical acclaim. We are now focused on driving consumer demand to reach our goal of full-year double-digit revenue growth and non-GAAP profitability."

Click here for the full results.

See Also: GoPro's Earnings Likely To Take Back Seat To Q4 Outlook

Q3 Highlights

• Revenues up 37 percent year-over-year

• Average selling price increased 22 percent year-over-year

• Quarterly operating expenses hit a 3-year low

• More than 50 percent of revenue was generated outside of U.S.

Shares were down more than 9 percent at time of publication, trading around $9.74.