GoPro shares plummet after ugly earnings report

The company notes the $0.82 per share loss includes charges of $102 million for a full valuation allowance on US deferred tax assets and almost $37 million for restructuring costs.

Shares of GoPro are down 12.94% at $9.55 a share on Friday morning after the company missed on revenue and issued disappointing guidance on Thursday after market close.

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Although the 4K-enabled GoPro Hero5 was only made available in September past year, company CEO Nick Woodman revealed that its replacement is planned - possibly for a similar release window. The confirmation isn't entirely surprising, but does lay to rest speculation that troubles with HERO5 production, as well as the Karma drone recall, may have delayed the arrival of GoPro's next flagship action camera. But even then, analysts' consensus estimates predicted GoPro would deliver higher fourth-quarter revenue of $574.5 million, albeit with lower adjusted earnings of $0.22 per share. "Longer term, we reduced our outlook for camera sales, drone market re-entry, and growth of non-hardware revenues".

To be fair, it's hard to measure how much that missed marketing opportunity hurt sales.

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The Karma finally went back on sale Wednesday, but wasn't around for the crucial holiday shopping season. The drone would be available in the global market in the spring. Additionally, GoPro says it sees first quarter revenue of $190 million to $210 million versus the Wall Street estimate of $267.6 million.

GoPro also ended 2016 by cutting its entertainment division, and more than 200 employees, as it wanted to focus on it core sport-camera business.

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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now. and GoPro wasn't one of them! The Motley Fool has a disclosure policy.


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