Last month, shares of GoPro plunged after it told the market revenue would come in below expectations. Before this, investors forecasted revenue of $496 million. The business earned $436.60 million during the quarter, compared to analyst estimates of $499.23 million.
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GoPro, Inc., formerly Woodman Labs, Inc., develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing and enjoying engaging content. The Company’s mountable and wearable cameras and accessories, which the Company refer to as capture devices, enable professional-quality capture and exceptional versatility. Piper Jaffray dropped their target price on shares of GoPro from $15.00 to $9.00 and set an “underweight” rating on the stock in a report on Thursday, January 14th. State Board of Administration of Florida Retirement System raised its stake in GoPro by 1.8% in the fourth quarter.
In the year-to-date, the company’s shares have lost 40.5%.
Making matters worse, the company said it expects first-quarter sales to be between $160 million and $180 million, well below the Thomson Reuters estimate of $291 million.
The company had cited slower-than-expected sales and a lack of product launches in Q4, as it announced plans to lay off 7% of its workforce. The Session4, which was released back in July 2015, has had to go through a couple of price cut to bring its price down to $199, all the way from its launch price of $399. Going forward, it is expected that the company will not provide an initial guidance for fiscal year 2016, but it can be safely assumed that the management will provide some comments on its expectations for the first quarter.
In December, the firm re-priced its Hero4 cameras, which dented the firm’s overall sales results.
Citigroup Inc. reiterated their hold rating on shares of GoPro Inc (NASDAQ:GPRO) in a research note published on Monday, AnalystRatings.Net reports. It has been trying to sell investors on this media branding since its IPO in 2014, but it seems that the public doesn’t buy it – GoPro is largely viewed as a camera maker.
GoPro’s stock started struggling late last summer, not long after the company’s only new camera announced in 2015 – the Hero 4 Session – apparently sold poorly enough to force GoPro to cut the price in half before the holidays.
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GoPro revenue for the year tallied US$1.6 billion, an increase of more than 16 per cent from 2014, but profit was down 71.8 per cent to US$36.13 million.
