GoPro sports camera manufacturers said on Wednesday that its third-quarter earnings and performance expectations for the last quarter, however, the levels of these two figures were lower than analysts had forecast.
Results showed that Gopro's net income of $ 18.8 million in the third quarter, an increase of 29% and revenue of $ 400 million (behind analysts had estimated $ 434 million), an increase of 43%; quarter expected adjusted profit of us $ 0.35-0.45 per share (significantly below market expectations of $ 0.82), revenue of 500 million to 550 million dollars (below market expectations of US $ 690 million).
Worth noting is that GoPro in United States revenue is facing a shrinkage of the local market, but focused on Japan, and Korea and China to help the company. GoPro product shipments of about 1.59 million units in the third quarter, up from 1.08 million in the same period last year.
Gopro in addition to facing stiff competition from traditional photography equipment manufacturers such as Sony, also faces previous season kicks off in Apple's iPhone 6s and other smartphones with high-definition cameras pressure, while in the second quarter of this year released its new flagship product--Hero 4 (priced at $ 399.99) lost to expected sales, so two months later was forced to cut its prices to $ 100. And since the release of Hero 4 cameras, GoPro value has roughly halved, apart from the Hero 4, Gopro is not in this year's other amazing products. Pay for 3 months captured in Lijiang
Industry analysts say Gropro remove new products failed to excite consumers desire to buy as well as smart phones outside pressure for two reasons, failed to pay attention to advertising branding is also a major cause of weak growth. It was reported that Gropro last year has not put into television advertising, but users of Word of mouth marketing on social networks and access to a large audience, such as spread of the Superman with GoPro on Youtube.
The Barron's wrote in mid-September, "taking into account the increasing competition, GoPro is a ' dangerous investments '", the company's investors for its ability to fend off competition from Apple, took a wait-and-see attitude.
Facing pressure of performance woes and tumbling, GoPro founder and CEO Nicolas Woodmen (Nicholas Woodman) that Gopro's performance sluggish growth, but demand is still strong. GoPro also worries about capital markets initiative, said on Wednesday, have already approved a $ 300 million stock repurchase program, in the current quarter, the sums involved will be accomplished in a variety of ways, such as on the open market, commodities.