GoPro Flashes Another Warning Signal

News junkies and seasoned traders got a rare headline Wednesday afternoon: "GoPro Shares Halted News Pending."

Shortly after the 4:07 p.m. EST trading halt on the Nasdaq, GoPro Inc GPRO issued a press release that showed concerning fourth-quarter and calendar year 2015 preliminary sales.

The company is now expecting quarterly sales around $435 million, sharply below the current analyst consensus estimate of $511.9 million.

For the calendar year, GoPro sees sales up about 16 percent to $1.6 billion.

The release also showed news of a "reallocation of resources." The company will cut about 7 percent of its 1,500-plus workforce.

GoPro expects to incur a $5 million to $10 million restructuring charge related to the initiative. The charge will be recorded during the first quarter of 2016.

GoPro said it will issue its fourth-quarter and full year results on February 3, 2016, after the market closes.

Shares of GoPro remained halted just before 4:30 p.m. EST. The stock will resume trade at 4:40 p.m. EST.

Notably, shares of Ambarella Inc AMBA, a supplier for GoPro devices, have traded down nearly 9 percent in Wednesday's after-hours session.