GoPro has announced that it expects to be profitable when it announces its third quarter financials. Shares in the action camera maker have in fact rocketed by 17 per cent. It comes as the camera market is reacting to smartphones with greater photograph potential. In fact GoPro had previously expected to be announcing a loss. So how has it turned things around?
The company’s body-mounted point-of-view cameras have a huge following among action junkies such as surfers and skydivers, but sales have taken a beating in recent quarters after a series of missteps including production issues, delays and of course competition. However, a boost in demand for its drones has helped GoPro re-establish itself. The company also said it was on track to launch the Hero 6, the latest edition of its flagship action cameras, and the new Fusion 360 camera by the holiday season.
“(GoPro‘s) execution is going well … specifically, the excitement is that the demand for existing GoPro products is strong and that bodes well for quite a Hero 6 sell run,” Wedbush Securities analyst Alicia Reese said.
GoPro’s shares have fallen nearly 50 percent since October over concerns it is losing ground to feature-rich smartphones and rival products..Production issues with the Hero 5 camera and a delay in the launch of its Karma drone had also dented sales, weighing on the company’s stock.
The company said it expects third-quarter revenue and gross margins to be at the high end of its forecast of $290 million to $310 million and 36 per cent to 38 per cent, respectively.