GoPro (GPRO) Slammed on Weak Holiday Quarter
GoPro (NASDAQ: GPRO) shares were crushed after-hours Wednesday after the company told investors that fourth quarter results would be much less than anticipated. The company also announced job cuts to stem the bleeding.
GoPro said it expects to report fourth quarter revenue of approximately $435 million, 15% below the Wall Street consensus of $511.9 million.
The company cited lower than anticipated sales of its capture devices due to slower than expected sell through at retailers, particularly in the first half of the quarter.
GoPro has also implemented a reduction in its 1,5000 employee workforce of approximately 7 percent. The company sees severance costs of about $5-$10 million in the first quarter from the cuts.
Shares traded down 23% to $11.35 at last check. This is down 53% from its June 2014 IPO price and down 83% from its 52-week high.
GoPro's news also sent shares of its top supplier Ambarella (NASDAQ: AMBA) down over 10% in after-hours trading.