August 1, 2019 / 8:12 PM / 21 days ago

GoPro lifts revenue forecast on new product slate, shares rebound

(Reuters) - GoPro Inc (GPRO.O) raised its 2019 revenue forecast on Thursday, as the action camera maker bets on new releases slated for later this year and helping shares reverse course to trade up 5%.

FILE PHOTO: A GoPro camera is seen in this illustration photo January 9, 2018. REUTERS/Thomas White/Illustration

The company on a post earnings call that it now expected full-year revenue to grow between 9% and 12%, up from prior forecast of a 7% to 10% rise.

“Thanks to continued demand in all regions, channel inventory is at appropriate levels globally and we believe we are well positioned for the launch of new products later this year,” Chief Executive Officer Nicholas Woodman said on the call with analysts.

GoPro in 2018 launched the Hero 7 White, Hero 7 Silver and Hero 7 Black as part of its holiday line-up, which helped the company report its first profit in five quarters.

“It is difficult to predict GoPro’s back-half success given that we have not yet seen the upcoming launch and we have very limited details,” Wedbush Securities analyst Alicia Reese said.

Through its products, ranging from the flagship HERO cameras to spherical camera Fusion, GoPro is trying to differentiate its premium priced cameras and lure back action junkies who have moved to smartphones with improved cameras.

Shares of the company fell 12% in extended trading after the company missed revenue estimates for the second quarter ended June 30.

Revenue rose 3% to $292 million, while analysts’ on average had estimated $302.3 million, according to IBES data from Refinitiv.

Net loss narrowed to $11 million, or 8 cents per share, from $37.3 million, or 27 cents per share, a year earlier.

GoPro said it was able to cut operating expenses by $5 million in the quarter, which helped gross margins improve to 35% from 29% a year earlier.

Excluding items, the company earned 3 cents per share, below estimates of 4 cents per share.

GoPro reiterated that it expects most of its U.S.-bound cameras to be in production in Mexico in the second half of 2019 as it looks to cushion any impact from higher tariffs from the U.S.-China trade war.

Reporting by Akanksha Rana and Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila

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