Why GoPro Inc. Stock Flew Higher Today

Markets Motley Fool

What happened

Continue Reading Below

Shares of GoPro Inc. (NASDAQ: GPRO) are flying higher today, up 23.7% as of 12:30 p.m. EDT, after the action camera and drone specialist announced better-than-expected second-quarter 2017 results.

So what

Quarterly revenue increased 34% year over year to $296.5 million -- well above guidance provided last quarter for a range of $260 million to $280 million -- helped by an 18% sequential increase in global sell-through of cameras. GoPro's Karma drone was also the No. 2-selling drone brand in the U.S. during the quarter, according to NPD data.

On the bottom line, that translated to an adjusted net loss of $12.9 million, or $0.09 per share, narrowed from an adjusted net loss of $72.6 million, or $0.52 per share in the same year-ago period. By comparison, analysts' consensus estimates predicted GoPro would incur a much larger adjusted net loss of $0.16 per share.

Now what

Continue Reading Below

For the third quarter of 2018, GoPro expects revenue in the range of $290 million to $310 million, and an adjusted loss per share of $0.06, plus or minus $0.05 per share. Both ranges were well above Wall Street's models for third-quarter revenue of $278.5 million and an adjusted net loss of $0.12 per share.

Finally, GoPro now expects GAAP operating expenses to be below $570 million (compared to below $580 million previously), and reiterated its expectation for adjusted (non-GAAP) operating expenses of under $495 million.

All things considered, this was a stellar performance from GoPro as it continues to execute its turnaround.

10 stocks we like better than GoPro
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and GoPro wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 1, 2017

Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends GoPro. The Motley Fool has the following options: short January 2019 $12 calls on GoPro and long January 2019 $12 puts on GoPro. The Motley Fool has a disclosure policy.