GoPro stock gains after earnings top expectations

GoPro stock gains after earnings top expectations

Company reported revenue roughly in line with the consensus forecast

GoPro Inc. broke from its pattern of posting disappointing holiday results, as the action camera maker delivered roughly in-line revenue and reported earnings per share ahead of expectations.

Shares were up 2.7% in after-hours trading.

The camera company posted fourth-quarter net income of $32 million, or 22 cents a share, after a loss of $56 million, or 41 cents a share, in the year-ago period. On an adjusted basis, GoPro GPRO, +0.78% earned 30 cents a share, compared with a 30-cent loss per share a year earlier. Analysts surveyed by FactSet had been modeling adjusted EPS of 26 cents.

GoPro’s revenue for the holiday period rose to $377 million from $335 million a year earlier. Revenue came in slightly ahead of the FactSet consensus, which called for $374 million. Unit sell-through of GoPro’s cameras climbed 20% in the fourth quarter, according to the company’s release.

Chief Executive Nick Woodman said that “a strong product lineup and efficient execution” drove the fourth-quarter results, and the company plans to further focus on “expense management” in the year ahead. GoPro is striving for a full year of profitability in 2019.

Woodman told MarketWatch at CES in Las Vegas last month that there was no “boogeyman” in the holiday-quarter this year, as GoPro has a history of missteps in its fourth quarter.

The company has 199,000 active paying subscribers to its GoPro Plus subscription offering as of Wednesday, marking a 50%-plus increase from a year ago.

GoPro shares have fallen 9% over the past three months, while the S&P 500 SPX, -0.22% has dropped 0.9%. The stock is down nearly 80% from its 2014 IPO price of $24.

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