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.
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.
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.
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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.