GoPro reported second-quarter earnings that beat analysts’ expectations on Thursday.
Here’s how the company did compared with Thomson Reuters consensus estimates:
- Loss per share: 15 cents vs. 22 cents expected
- Revenue: $282.7 million vs $270.2 million expected
In the year-ago quarter, GoPro reported a loss of 9 cents per share on revenue of $296.5 million. Thursday’s results represent a 4.7 percent year-over-year decline in revenue. That is better than the 9 percent decline analysts had forecast.
Founder and CEO Nick Woodman said that GoPro is “on track” and will be profitable in the second half of the year.
The stock initially jumped as much as 10 percent in after-hours trading. It has since pared its gains but was still seen trading 5 percent above its closing price.
The stock has plunged 25 percent in the past 12 months as the company tries to reduce costs and boost sales amidst growing competition.
Following a rough 2017 that forced the company to slash prices during the prime holiday shopping season, GoPro cut more than 20 percent of its global workforce in January. That same month the company decided to exit the drone market, abandoning its Karma product line. Founder Nick Woodman, once the highest paid CEO in the U.S., is set to receive just $1 this year after the board cut his salary and eliminated any potential bonuses.
This year GoPro has expanded its product line to stay competitive in the increasingly crowded action camera market. The company launched the entry-level HERO camera in March. At $199, it is the least expensive GoPro available and closer in price to cameras sold by budget Chinese manufacturers that have gained traction in recent years.
Despite its difficulties, GoPro still dominates the action-camera market. In July, the company said it has sold more than 30 million of its flagship HERO cameras since the first version was launched in November 2009.
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