uploads///GoPro Revenues Saw Robust Growth in Revenues in Fiscal Q

Why GoPro Shares Soared after its Results

By

Aug. 10 2017, Updated 7:38 a.m. ET

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Consumer
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • People looking at data on a laptop
    Consumer
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Consumer
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.