GoPro shares tumble after sales miss
GoPro shares tumbled as much as 14pc on Friday after a disappointing outlook for sales this quarter, missing analysts' estimates and reflecting slow demand for its action cameras and the delayed launch of a new drone.
Revenue will be $190m to $210m in the first quarter, GoPro said in a statement on Thursday after the markets closed. Analysts were expecting $267.6m, on average. In the fourth quarter, sales rose 24pc to $540.6m, also missing analysts' average estimate for $573.3m.
The past several months have been especially hard on GoPro. The company was forced to recall its Karma drone in November, less than two months after its much-hyped debut, due to problems with the battery that led some of them to lose power in mid-flight.
Chief executive Nick Woodman had been betting on Karma and the new Hero5 cameras to revitalize demand and the company's flagging share price. The drone is back on sale as of earlier this week with limited initial shipments, but it faces intense competition from more experienced manufacturers.
The company forecast first-quarter gross margins will be in the low-30 percent range, compared with the average analyst estimate of 40.5pc.
The shares tumbled to as low as $9.40 Friday, the biggest drop in three months. It was $93.85 in October 2014.
Sunday Indo Business