Camera, drone, and overall photography equipment producer GoPro has had some major swings over the past couple of days. Today the stock fell by as much as 20% in after-hours trading on Wednesday when the company announced that earnings for the second half of the year will miss expectations due to camera production delays.
In a conference call with analysts on Wednesday, CEO Nick Woodman went on to say that there was a major late-stage production delay that would push back its new HERO 8 BLACK camera to Q4 instead of Q3 as it had originally planned.
As such, this would lead to a decline in revenues for GoPro and would ultimately miss revenue expectations. Specifically, the delay led to GoPro cutting back on its revenue forecast from $1.28 billion to $1.22 billion, with forecasted earnings per share coming in at 33-39 cents rather than 37-49 cents per share.
“Due to a late stage production delay, HERO8 Black shipments will shift from the third quarter to the fourth quarter of 2019, resulting in a significant revenue shift between the quarters,” said the company.
Back on Monday, shares of GoPro spiked by 11% after it announced the unveiling of two new, highly anticipated cameras. The first is a $399 HERO 8 BLACK that’s significantly lighter than the previous HERO 7 model, and a $499 HERO Max that capable of recording in 5.6K resolution in a 360-degree arc. Despite having introduced multiple different models of their signature camera of the past years, customers remain eager to buy what GoPro has to offer.
Preorders have already begun with shipments for the HERO 8 Black originally being meant to begin on October 15th and the Max a bit later in the month. Now it seems that this won’t be the case at all and that some customers might not be able to get their cameras by the holiday season due to these production setbacks.
While shares of GoPro fell by as much as 20%, they’ve now settled at a 13.7% decline so far in after-hours trading, although this figure is likely to change as Thursday’s markets open up. Over the past six-months, GoPro has seen its stock steadily tumble 33.5% including this recent decline.
Most Wall Street analysts covering the company have a neutral hold rating, while only one has an optimistic “buy” and another has a “sell” rating. Considering that over the past few years, shares of GoPro have lost the vast majority of its market value, its not surprising that most analysts are neutral. Time will tell how the company will perform in the future but right now, it seems that the remainder of 2019 won’t be a particularly great year for GoPro.
GoPro Company Profile
GoPro Inc is a United States-based company that is principally engaged in designing and providing cameras, mounts, drones and appliances. The company outsources a part of manufacturing to third parties in China.
The company sells products across the world through its direct sales channel, which generates over half of total revenue, and indirectly through its distribution channel. The company has presence, including in the Americas, Europe, Middle East, Africa, and Asia-Pacific, with the Americas contributing over half of total revenue. – Warrior Trading News
