GoPro shares jump as company expects to post adjusted profit in 3Q

Wearable camera maker GoPro Inc (NYSE:GPRO) said on Thursday it expects to be profitable on an adjusted basis in the third quarter, sending its shares up 17 percent.

The company said it expects current-quarter revenue and gross margins to be at the high end of its forecast of $290 million to $310 million and 36 percent to 38 percent, respectively.

GoPro said it expects to benefit from its upcoming Hero6 and Fusion 360 action-cameras.

The company's body-mounted point-of-view cameras won a huge following among action junkies such as surfers and skydivers, but sales took a beating in the past few quarters after a series of missteps including a delay in the launch of its Karma drone and production issues with its Hero5 camera.

Since then, the company has focused on the launch of the Hero 6 and the Fusion 360 cameras in an effort to woo customers.

GoPro, however, said on Thursday it expects to post a third-quarter loss on a GAAP basis, or before excluding one-time items.

The company had previously forecast third-quarter adjusted loss of 1 cent to 11 cents per share.

Analysts on average are expecting a loss of 5 cents per share and revenue of $304 million, according to Thomson Reuters I/B/E/S.

The company's shares were up 16.9 percent at $10.40 in premarket trading. (Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza and Saumyadeb Chakrabarty)