GoPro Shares Rally On Job Cuts, Forecast Of Adjusted 2017 Profitability

By Wallace Witkowski Markets MarketWatch Pulse

GoPro Inc. shares rallied in the extended session Wednesday after the sports-camera maker announced job cuts and said it expects to be profitable on an adjusted basis in 2017. GoPro shares jumped 11% to $8.16 in after-hours trading. The company said it plans to cut about 270 jobs, or about 17% of its workforce based on the 1,552 employees it reported having at the end of 2016. GoPro said it expects first-quarter revenue near the high end of its forecast $190 million to $210 million range, and positive 2017 earnings before interest, taxes, depreciation and amortization. Analysts surveyed by FactSet expect first-quarter revenue of $199.8 million, and forecast a negative adjusted EBITDA of $70.6 million for 2017.

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