GoPro Inc (NASDAQ: GPRO) is having an overwhelmingly strong day in the market today after the company adjusted its expectations for the fiscal third quarter, increasing expectations due to strong demand for their products. Of course, this caused excitement among investors who sent the stock soaring, causing our partners at Trade Ideas to send the alert. At the moment (10:49), GPRO is trading at $10.27 per share after a gain of $1.37 per share (15.44%) thus far today.
GPRO Gains On Updated Q3 Expectations
As mentioned above, GoPro is having an incredibly strong start to the trading session this morning after the company provided an update with regard to what it expects to report for the third quarter. Here's what GPRO had to offer:
- Earnings Per Share – First and foremost, GPRO said that it will be profitable on an adjusted basis in the third quarter. This proved to be a surprise to Wall Street analysts who projected that the company would generate a per share loss of $0.05.
- Revenue – The company also said that it is expecting revenue to be positive. In their release, GoPro said that they are expecting revenue to come in on the high end of previously provided guidance. The guidance expectations are that revenue will come in between $290 million and $310 million. If the company produces on the high end of that range, it will beat estimates of $304 million.
- Gross Margin – Finally, GPRO said that it is expecting that gross margin will come in at the high end of previously provided guidance. The expectation is currently that gross margin will range between 36% and 38%.
In a statement, CJ Prober, CEO at GPRO, had the following to offer:
“Consumer demand for GoPro products is strong... Channel inventories have been reduced and we're incredibly excited about the upcoming launch of two great new products, HERO6 and our 5.2k spherical camera, Fusion.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GPRO. In particular, we're interested in seeing if the company can reach the high bar it has set for itself. We'll continue to follow the story closely and bring the news to you as it breaks!
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