Investors Pull the Plug on GoPro (GPRO) After Brutal Miss
GoPro (NASDAQ: GPRO) is getting crushed to the tune of 17% after-hours after missing on the top and bottom line in the third quarter and guiding lower for the fourth quarter.
Revenues for the third quarter rose 43% to $400.34 million but missed the consensus estimate of $435.33 million. Non-GAAP EPS rose 108% to $0.25 but missed the analyst estimate of $0.30.
Non-GAAP gross margin was 46.8% versus 44.5% last year.
GoPro also announced a $300 million share repurchase plan, but it is doing little to stem the bleeding.
"I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated," said GoPro Founder and CEO, Nicholas Woodman.
Further, the company added insult to injury by guiding lower on its earnings call. GoPro said it sees fourth quarter EPS of $0.35-$0.45 on revenue of $500-$550 million. This compares to the consensus of $0.82 and $690.49 million, respectively.
Analysts have also expressed concerns with inventory levels. Piper Jaffray's Erinn Murphy said it was concerning that overall inventory was up 147% year-over-year versus 42% year-over-year growth in sales.
Shares rose 7.3% intra-day into the print but now has given back all those gains and then some.
(Updated - October 28, 2015 6:09 PM EDT)