GoPro earnings top estimates, but executives warn of headwinds

0
8

Shares of GoPro Inc. GPRO, +1.48% were headed slightly higher in after-hours trading Thursday after the maker of action cameras topped expectations with its second-quarter results but acknowledged that inflation and foreign exchange could weigh on performance in the back half of the year. The company logged net income of $3 million, or 2 cents a share, whereas it posted net income of $17 million, or 10 cents a share, in the year-earlier quarter. The prior-year period witnessed a $12 million tax benefit. On an adjusted basis, GoPro earned 8 cents a share, down from 12 cents a share in the year-earlier quarter, whereas analysts surveyed by FactSet were anticipating 7 cents a share. GoPro’s revenue inched up to $251 million from $250 million and came in above the FactSet consensus, which was for $239 million. For the third quarter, GoPro anticipates revenue of $295 million to $305 million, while analysts had been looking for $335 million. The company also expects 15 cents to 19 cents in adjusted earnings per share, while the FactSet consensus called for 28 cents. In prepared remarks published ahead of GoPro’s earnings call, Chief Financial Officer Brian McGee acknowledged “key macro dynamics impacting our business,” including that big-box retailers “are actively reducing their inventories along with weeks of supply.” He also expects impacts from foreign exchange and noted that “Inflation, rising interest rates and other macroeconomic issues may impact demand as well as competition for share of wallet.” Additionally, McGee said that GoPro was “actively evaluating options to optimize profitability while staying laser focused on our longer-term strategy and growth initiatives.” Shares were up 0.4% in the aftermarket. They’ve lost 31% over the past 12 months as the S&P 500 SPX, -0.08% has fallen 31%.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleDow Jones Newswires: RBA cuts GDP, unemployment forecasts and ramps up inflation expectations
Next articleBeyond Meat will lay off 4% of its workforce as revenues drop

LEAVE A REPLY

Please enter your comment!
Please enter your name here