GoPro reported revenue of $202.3 million in 1Q18
GoPro (GPRO) stock rose almost 12% in the week ended May 4 to close at $5.45. GoPro stock fell marginally by 0.4% on May 7, and the stock has now generated returns of -36% in the last 12 months and 11% in the last month after falling 13% in 2017. GoPro is trading 23% above its 52-week low of $5.43 and 54% below its 52-week high of $11.89.
GoPro announced 1Q18 results last week and reported revenue of $202.3 million, a decline of 7.4% YoY. Non-GAAP (generally accepted accounting principles) EPS (earnings per share) was -$0.34. Analysts expected GoPro to post revenue of $184.2 million with EPS of -$0.37 in 1Q18.
Will lower-cost products drive revenue for GoPro?
GoPro has tried to attract consumers by launching a camera priced at $199. GoPro’s camera shipment volume rose 3% in 1Q18. However, the average selling price fell from $296 in 1Q17 to $267 in 1Q18. The average selling price is expected to go down further as sales of the $199 device are expected to keep rising this year.
Analysts expect GoPro’s revenue to fall 19.2% YoY to $239.7 million in 2Q18 and 8.5% YoY to $1.08 billion in 2018.