GoPro Earnings Report For 3QFY15

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The camera making company has experienced some massive losses in the last quarter and analysts believe it is mainly because of the major buyback plan that the giant has been carrying out lately.
 

GoPro Inc was seen to release its earnings report for the third quarter of the year 2015 and the numbers that came out turned out to be a huge disappointment for the investors. The camera making company not only missed the estimations of the higher end, but also ended up missing the ones made on the bottom line. This is also being considered as the first time that something like this took place within the camera manufacturers as it has also managed to either meet the expectations or beat them since the past one year it has been established as a successful smart camera maker.​​

GoPro stock was seen to witness a massive dip of around 60% following the earnings that turned out to be way below the expectations which has turned the investors in the company rather concerned about where the company might be headed in the future. Only recently the camera makers informed the investors that it will be carrying out a massive buyback plan but analysts in the market failed to take the idea as a progressive one and it was clearly believed that the manufacturers might just be facing a really bad time on the index.

As far as the reported revenue is concerned, a rise was seen on an annual basis and was recorded to be around $400 million. However, the disappointment poured in when it was seen that the giant failed to meet the guidance it gave to the market which was for the revenue to come around $430 million to $445 million.The adjusted income for the giant increased by a huge 103%, making the actual figure to be recorded at $36.6 million. This show that the income per share turned out to be $0.25 which was much less than the actual estimation of $0.4 which was made by the analysts of the industry.

The CEO of the company, Nick Woodman, believes that the main reason why this dip in the earnings has been observed is due to the high priced cameras that the company makes and also lack of strong advertisement plans that need to be put into action in order for a better next quarter.