GoPro Shares Plunge as Holiday Revenue Forecast Disappoints

Nov 02 2018, 3:32 PMNov 02 2018, 5:26 PMNovember 02 2018, 3:32 PMNovember 02 2018, 5:26 PM

(Bloomberg) -- GoPro Inc. shares tumbled the most in almost 10 months after giving an outlook for sales in the holiday period that missed analysts’ estimates.

The camera maker beat Wall Street revenue estimates for the third quarter, but gave a forecast for revenue of as much as $380 million for the current quarter. Analysts had estimated GoPro would reach sales of $393 million on average during the holiday period. Also weighing on the shares, GoPro reported gross margins in the third quarter that fell short of estimates.

GoPro slumped as much as 23 percent on Friday, the biggest intraday drop since January, bringing losses for the year to about 25 percent.

In an interview on Bloomberg TV, Chief Executive Officer Nicholas Woodman said he was confident GoPro would have a "successful holiday quarter." The company’s core business is growing, Woodman said, adding that new types of 360-degree cameras would provide ample growth opportunity to restore profitability in the fourth quarter.

GoPro reported sales of $286 million for the third quarter, down 13 percent from a year earlier. Its net loss almost doubled to $27.1 million, or 19 cents a share.