November 1, 2018 / 8:13 PM / 2 years ago

GoPro forecasts fourth-quarter revenue below estimates, shares fall

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

(Reuters) - GoPro Inc on Thursday forecast a fourth-quarter revenue below analysts’ estimates as it continues to battle waning demand for its products, sending the shares of the action-camera maker down nearly 13 percent in after-market trading.

The company said it expects fourth-quarter revenue to be between $360 million and $380 million, below analysts’ estimates of $392.9 million, according to IBES data from Refinitiv.

The forecast was a let down as the company launched new low-price models of its flagship Hero camera for the holiday season.

GoPro has been trying to drive demand for its trademark action-cameras — which were once a must-have for surfers, skydivers and other action junkies — as competition ramps up.

The company said it would be profitable in the fourth quarter and expects “low channel inventory” to be well-positioned for the first quarter.

The San Mateo, California-based company reported a net loss of $27.1 million, or 19 cents per share, in the three months ended Sept. 30, compared to a profit of $14.7 million, or 10 cents per share, a year earlier.

On an adjusted basis, the company lost 4 cents per share. Revenue fell 13.3 percent to $285.9 million.

Analysts had expected a loss of 6 cents per share on a revenue of $272.3 million.

The company’s shares, which have lost 13 percent this year, were trading at $6.25 after the bell.

Reporting by Sonam Rai, Pushkala Aripaka and Diptendu Lahiri in Bengaluru

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