GoPro surges after cost cuts lead to earnings beat


A GoPro camera is seen on a skier's helmet as he rides down the slopes in the ski resort of Meribel, French Alps, January 7, 2014.    REUTERS/Emmanuel Foudrot/File Photo

Thomson Reuters

A skier wears a GoPro camera on his helmet as he rides down the slopes in the ski resort of Meribel.

GoPro's stock surged after cost-cutting efforts helped the company post second-quarter results that beat analyst estimates. The maker of wearable cameras also raised guidance for the third quarter.


Second-quarter sales totaled $296.5 million, up 34% from the previous year, while the adjusted loss for the period was $0.09 per share, beating analyst estimates of a $0.25 per share deficit. GoPro also said third-quarter revenue will be between $290 million and $310 million, above the consensus forecast of $277.8 million.

"GoPro is building momentum," founder and CEO Nicholas Woodman said in a statement. "Strong demand combined with our cost management and margin initiatives contributed to GoPro's EBITDA positive performance in the second quarter."

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The spike is welcome news for GoPro investors, who have seen the stock trade sideways for the past four months following a 58% decline from a nine-month high reached in September 2016.

Following the second-quarter earnings news, shares of GoPro spiked 13% to $9.35 a share as of 4:23 pm ET.


Get the latest GoPro stock price here.

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