GoPro Swings To Q3 Profit, Tops View; Shares Up 10%

(RTTNews) - Action-sports camera maker GoPro Inc. (GPRO), Thursday reported a swing to profit in the third quarter, as revenues surged 46 percent driven by strong demand for its wearable cameras, with both earnings and revenues coming in ahead of Wall Street estimates.

GoPro shares rose about 10 percent in after-hours trade on the Nasdaq, following the announcement.

San Mateo, California-based GoPro reported a third-quarter profit of $14.6 million or $0.10 per share, compared to a loss of $1.1 million or $0.01 per share last year.

Excluding one-time items, adjusted earnings rose to $18.0 million or $0.12 per share from $1.0 million or $0.01 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.08 per share for the third quarter. Analysts' estimates typically exclude special items.

GoPro's revenue for the third quarter jumped 45.7 percent to $280.0 million from $192.1 million a year ago. Analysts had a consensus revenue estimate of $263.45 million for the third quarter.

Gross margin for the quarter improved to 44.3 percent from 33.3 percent a year ago.

GoPro, founded by surfer-turned entrepreneur Nicholas Woodman, went public in June this year at $24 a share. The company makes small high-definition video cameras that can be mounted on adventurers, like sky divers, cyclists and skiers, to record their extreme action and skills.

The company said with the launch of HERO4, monthly content submissions to GoPro's Video of the Day and Photo of the Day site jumped about 160 percent from September to October.

GPRO closed Thursday's trading at $68.25, up $0.36 or 0.53%, on the Nasdaq. The stock further gained $7.35 or 10.77%, in the after-hours trade.