Business and News from The Golden State
By DONNA BALANCIA – GoPro, Inc. is expected to report fourth quarter earnings on Feb. 3 after market close.
The consensus EPS forecast for the quarter is 9 cents, according to Zacks Investment Research. The reported EPS for the same quarter last year — the three months ending in January 2016 — was 85 cents.
The stock closed down $1.02 to $11.46 on Friday, Jan. 15. The market was closed for the Martin Luther King Jr. Holiday on Monday.
In late October, San Mateo-based GoPro reported third quarter results that missed estimates, sending the stock plunging 16 percent in after-hours trading.
The California company that makes wearable cameras said its adjusted earnings came in at 25 cents per share, missing analyst estimates by four cents. Revenue increased 43 percent to $400.3 million, missing analyst estimates of $433.6 million.
GoPro’s results were hampered by disappointing sales of its square Hero4 Session camera, which it introduced this summer, but has since relaunched with a lower price tag. At the new $299, it is priced between the HERO4 Silver and HERO+. The camera was said to be “well positioned for the holidays,” the company noted last October.
CEO Nicholas Woodman said on an earnings call with analysts and investors that the company didn’t spend enough on marketing.
GoPro is trying to go into other areas including virtual reality and drones. It is trying to leverage use of the footage created by its users and is encouraging users to submit their video with the promise of winning contests and money.
GoPro also said on Wednesday its board had authorized a $300 million share repurchase program. #gopro