Investing.com - GoPro Inc (NASDAQ:GPRO) shares zoomed higher on Friday, boosted by the company’s second quarter results, which surpassed analysts expectations, while the company announced that business will continue to improve going forward.
GoPro posted a net loss of $30.5 million, or 22 cents a share, in the quarter, well below the loss of $91.8 million, or 66 cents a share, posted in the year-ago period. The adjusted net loss was 9 cents per share, much smaller than the 25 cents per share loss analysts polled by FactSet were expecting. Revenue surged to $296.5 million from $220.8 million in the year-ago period, handily beating the consensus estimate for $269.1 million.
GoPro is expecting its loss to continue to shrink. For the third quarter, the company set guidance in a range of a loss of 6 cents a share to earnings of 5 cents a share. The company forecast revenue of $290 million to $310 million. Analysts forecast a loss of 12 cents a share on revenue of $278.5 million.
GoPro’s 2014 IPO was met with much enthusiasm, and shares zoomed higher for the first four months following their debut. But, business challenges quickly impacted the company, causing investors to sour over its future. The stock has yet to regain its former glory, and GoPro is still down almost 72% since the IPO. This is even with shares trading up about 20% on Friday.
And now, analysts are turning positive on GoPro's future. Past challenges included the companies aggressive pursuit of growth, but delayed product launches and increased competition. But now, the company’s CEO said the goal is “predictable growth”.