GoPro’s earnings and revenue beat estimates
Camera maker GoPro (GPRO) released its fiscal 2Q17 results on Thursday, August 3. GoPro shares have surged by 12% after beating earnings and revenue estimates.
The company’s EPS (earnings per share) for fiscal 2Q17 came in at -$0.09, compared with the Wall Street estimate of -$0.25. Meanwhile, the company reported $297 million in revenue, compared with analysts’ estimate of $269 million. Revenue grew a whopping 34% from 2Q16.
GoPro stock still a far cry from 2014 prices
While GoPro stock soared after the 2Q17 results were released, it is only at ~$9 per share, compared with $87 per share back in 2014. Therefore, it has a long way to go before it makes investors happy. GoPro investors have seen massive value erosion due to a number of issues, including poor software quality and supply chain difficulties.
That said, the company has been working hard to resolve its issues. It has freed up old inventory, thereby saving some cash. It has also been trying to fix its supply chain issues and making efforts to keep its drone business alive. As the graph above shows, the company has achieved robust revenue growth over the last few quarters.
GoPro saw decent sales of its HERO5 camera on Amazon’s Prime Day, despite not offering a discount. Last week, GoPro launched the QuikStories editing app, which allows GoPro users to share their videos. The company also initiated a company-wide reshuffle recently, which included job cuts and closing its entertainment division.