GoPro Q4 Results Miss Street, Shares Plunge 12%

(RTTNews) - Shares of GoPro Inc. (GPRO) plunged about 12% on extended trading session Wednesday after the action-sports camera maker's fourth-quarter profit and revenues fell short of Wall Street estimates.

San Mateo, California-based GoPro reported a fourth-quarter profit of $95.82 million or $0.65 per share, compared with last year's profit of $31.67 million or $0.22 per share.

GoPro reported adjusted profit of $102.5 million or $0.70 per share, compared with last year's profit of $42.36 million or $0.30 per share. On average, 6 analysts polled by Thomson Reuters expected earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.

GoPro's revenues for the quarter rose 40% to $528.35 million from $377.38 million a year ago. Analysts had a consensus revenue estimate of $565.95 million for the quarter.

Gross margin for fourth quarter was 38.2%, up from 37.7% last year.

"We believe we are well-positioned to meaningfully expand both margin and EPS in 2020 thanks to the strength of our entire product line, high-margin Plus subscription service and app monetization strategy," GoPro Chief Executive Nick Woodman said in a statement.

GRPO closed Wednesday's trading at $4.36, up $0.21 or 5.06%, on the Nasdaq. The stock, however, slipped $0.51 or 11.70% in the after-hours trade.