GoPro Inc (NASDAQ:GPRO) wasn’t going to be outdone by its own horrid performance during regular Thursday trading. So, GoPro stock followed up a 7% decline with another 20%-plus loss in the after-market thanks to a disappointing third-quarter earnings report.
The beleaguered action camera company posted a loss of 60 cents per share on on $240.57 million in revenue. Wall Street was expecting a loss of 36 cents per share on $316 million in sales.
The current quarter doesn’t look much better. GPRO guided profits between 25 and 35 cents on revenue between $600 million and $650 million. Both ranges were way below analyst expectations of 46 cents per share on $675.5 million. Full-year revenue is also expected to be soft, in the range of $1.25 billion and $1.3 billion, shy of the $1.39 million forecast by the Street.
But, as InvestorPlace contributor Laura Hoy said, if CEO Nick Woodman is content on selling the GPRO story as an experience-sharing company rather than a camera company, then his company better have the stats to back that up.
It didn’t.
GoPro CEO Nick Woodman had this to say:
“These are the best products we’ve ever made and consumer demand is strong. GoPro is now a seamless storytelling experience and we’re very happy with customer reception so far. Looking forward to 2017, we expect to return to profitability, driven by the strength of our new products, double digit revenue growth and annual operating expenses of approximately $650 million.”
Remember: GoPro has recently released the Hero5 Session, Hero5 Black and Karma drone, so those results should be sneaking in at some point. The fact that guidance is so lousy is telling … and what it’s telling us isn’t anything good.
As far as highlights were concerned, investors had to be content with things such as 30% increases in social media view of GoPro content, and GoPro’s Facebook (NASDAQ:FB) and Instagram followers surpassing 10 million.
That’s nice … and that’s also not going to drive GPRO stock anywhere.
GoPro Stock Charts Go From Bad to Worse
GoPro stock was in trouble anyway, but Thursday’s news has crushed the stock from a chart perspective. Shares had spent a couple of days battling with the 200-day moving average (currently at $12.50) for their second time since pushing through back in August.
GPRO had already been rejected by the 50-day MA in October, and now it’s hurtling through its long-term moving average to levels last seen in late spring.
And there’s still more basement to explore. With the big moving averages out of the way, the last major point of resistance for GPRO stock is around the $8.60 level – GoPro’s all-time low set in mid-May. That’s another 7% or 8% from where shares were sitting in Thursday’s early after-market trade.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
