GoPro's production issues cut into its sales and stock price
The company has high hopes for the Karma and Hero5, but it could be 2017 before it's profitable again.
Despite including the release of its new Karma drone and Hero5 camera, GoPro's quarterly earnings report had some bad news today. With sales falling to $240.6 million (compared to $400 million in the same period last year), and a forecast for the year that dropped from a range of $1.35 billion to $1.5 billion, to $1.25 billion to $1.3 billion, shareholders sent its price diving to under $10 per share in after-hours trading. The company lost $104 million during the quarter, but founder and CEO Nicholas Woodman said: "Looking forward to 2017, we expect to return to profitability, driven by the strength of our new products." On a call about the earnings, Woodman said the company launched fewer cameras and drones than expected due to production issues that will also probably keep it from meeting demand during the holiday season.
His optimism was more easily appreciated two years ago when the stock price climbed above $80, and displays were rolling out in stores like Best Buy, long before it had to quickly slash prices on products like the Hero4 Session. Now, investors are spooked by the lowered results and a poor report from fellow gadget maker Fitbit yesterday. Still, the two new products, plus updates like its GoPro Plus cloud-based service, Quik video editing app and other tweaks provide something to look forward to -- especially if we all start taking more exciting vacations.
