Action-camera maker GoPro ( GPRO ) took an ugly spill on Friday, a day after it reported mixed Q1 earnings results and postponed the launch of its flying-camera drone. GoPro shares tumbled more than 7%, below 10, in morning trading on the stock market today . GoPro stock started the year near 18. Investors have dumped GoPro shares in recent months on concerns that the company is a one-hit wonder that has largely saturated the market for its wearable cameras. In the March quarter, San Mateo, Calif.-based GoPro lost 63 cents a share, compared with earnings per share of 24 cents in the year-earlier period. Sales fell 49%, $183.5 million. Analysts polled by Thomson Reuters expected GoPro to lose 60 cents a share on sales of $169.1 million. GoPro pushed back the launch of its Karma drone by about six months to the holiday season from the end of Q2. GoPro needs Karma to be a hit, Dougherty analyst Charles Anderson said in a research report Friday. “It is incumbent upon GoPro to release a great drone, not merely a good one, considering how strong the competition is,” Anderson said. “So if they need more time to work on it, we endorse the idea.” Anderson rates GoPro stock as neutral. “Until investors can judge the commercial appeal of Karma and the forthcoming Hero 5 camera, we don’t see any upside or downside catalysts for the stock,” he said. GoPro is preparing to launch a consumer drone at a time when current vendors, such as DJI, Parrot and 3DR, are cutting prices, Piper Jaffray analyst Erinn Murphy said in a report Friday. She rates GoPro stock as underweight. “Pricing has slipped from the $700-$900 range to the $400-$600 range, and we are continuing to see promotional activity accelerate in the space,” Murphy said. “GoPro will be releasing its drone at a time where the consumer has not only seen growing options of drones, but following what amounted to be an increasing promotional environment for the category since last holiday.” GoPro Promises Drone With ‘Revolutionary Features’ On the company’s earnings conference call with analysts late Thursday, GoPro CEO Nick Woodman said Karma will have “revolutionary features” not found on other drones currently on the market. “Karma includes revolutionary features that differentiate it from other drones — features that make it much more than a drone and deliver the versatility, value and performance that consumers expect from GoPro,” Woodman said. “To give ourselves more time to fine-tune these features, we have made the difficult decision to push Karma’s launch to the holidays.” Wedbush analyst Michael Pachter remained positive on GoPro’s longer-term prospects. He reiterated his outperform rating on GoPro stock, with a 12-month price target of 13. “After a series of high-profile missteps, including the disastrous Hero 4 Session launch, the lack of new Hero cameras at year-end, and a negative pre-announcement in January, 2016 presents an inflection point for GoPro stock,” Pachter said. “Given its history of innovation, we are willing to give GoPro the benefit of the doubt for the time being, and see upside if the Karma drone and the Hero 5 are well-received. “However, the delay of the Karma launch suggests delayed gratification for investors, and we do not expect investors to return to GoPro stock until there is greater visibility into the company’s product launches.” GoPro maintained its full-year revenue guidance, but might be too optimistic, Pachter said. “In order to hit the high end of its guidance, GoPro would have to have wild success with its next motion-capture devices, and the Q4 Karma launch would have to drive all-time record quarterly sales,” Pachter said. “While we think that these outcomes are possible, we are reluctant to remain Pollyannaish about GoPro’s prospects.” GoPro expects full-year sales of $1.35 billion to $1.5 billion, or $1.43 billion at the midpoint. Wall Street had been modeling full-year sales at $1.37 billion. In 2015, GoPro posted sales of $1.62 billion. Shares of Ambarella ( AMBA ), which makes image processing chips for GoPro cameras, were flat, near 38, in morning trading Friday. RELATED: GoPro Adds Developer Program After Snatching Apple Designer
Action-camera maker GoPro ( GPRO ) late Thursday reported a wider-than-expected loss for the first quarter, but sales beat forecasts. GoPro also reaffirmed its full-year revenue guidance. GoPro stock fell nearly 3% after-hours trading, following the earnings news release. GoPro stock fell 6.1%, to 10.71, in Thursday’s regular session. GoPro also announced that it is delaying the launch of its Karma flying-camera drone until the holiday shopping season. It had been scheduled for release this quarter. The San Mateo, Calif.-based company lost 63 cents a share in the March quarter, compared with earnings per share of 24 cents in the year-earlier period. It posted sales of $183.5 million, down 49%. Analysts polled by Thomson Reuters expected GoPro to lose 60 cents a share on sales of $169.1 million. GoPro did not give Q2 guidance, but said it continues to expect full-year sales of $1.35 billion to $1.5 billion, or $1.43 billion at the midpoint. Wall Street had been modeling full-year sales at $1.37 billion. GoPro is facing concerns about market saturation and pricing pressure from competitors, including Garmin ( GRMN ), Sony ( SNE ). Possible catalysts for the company include its upcoming drone and devices for recording 360-degree videos for virtual reality headsets like Facebook ’s ( FB ) Oculus Rift.
Square ( SQ ), GoPro ( GPRO ), Herbalife ( HLF ), CyberArk ( CYBR ) and FireEye ( FEYE ) were among those reporting late Thursday. Square Square reported an adjusted net loss of 14 cents a share, missing expectations for a 9-cent per-share loss, as operating costs soared 72%. Revenue grew 51% to $379 million, beating expectations for $343.6 million. Square’s adjusted revenue excludes transaction revenue from its Starbucks ( SBUX ) deal, which is set to expire in Q3. Gross payment volume jumped 45% to $10.3 billion. The mobile payment company raised its full-year adjusted revenue outlook to $615 million-$635 million from $600 million-$620 million previously. Shares 12% late, after closing down 2.5%. GoPro GoPro swung to a loss of 63 cents a share in Q1 from a profit of 24 cents a share last year, missing analyst estimates for a per-share loss of 60 cents. Revenue dropped 50% to $183.5 million, beating projections for $169.1 million. The action camera maker reaffirmed its 2016 revenue guidance of $1.35 billion-$1.5 billion, while analysts have estimated $1.375 billion. Shares initially rose after hours, but reverse to trade down 1%. GoPro fell 6.05% during the regular session. Herablife The nutritional supplements firm earned $1.36 a share in Q1 excluding various items, up 5% vs. a year earlier, defying forecasts for a fifth straight year-over-year decline, to $1.09. Sales rose 1% to $1.11 billion, its first increase in six quarters. Sales rose 11% excluding currency swings. Herbalife also said that talks with the FTC over its marketing are at an advanced stage, saying it expects to pay about $200 million in a settlement. Herbalife sees Q2 EPS of $1.10-$1.20 raised its full-year EPS target to $4.40-$4.75 from $4.05-4.50. Analysts had expected $1.16 in Q2 and $4.65 for 2016. Herbalife stock shot up 14% in after-hours trading to 66.46 on its strong Q1 results and hopes for an FTC resolution. That would be the highest in nearly two years and above a buy point at 63.69. CyberArk Software The cybersecurity company said Q1 earnings grew 44% to 23 cents a share. Revenue grew 43% to $46.9 million, said CyberArk. Management sees Q2 EPS of 18-20 cents on $47.5 million-$48.5 million in revenue, the midpoints of which are above current analyst views for 18 cents a share on $47.5 million. For the year, CyberArk expects EPS of 87-91 cents on $209.0 million-$211.0 million in total revenue vs. forecasts for 87 cents a share on $206.9 million. Shares fell about 4% late after closing up 1.6%. FireEye FireEye announced several leadership shuffles, notably that current President Kevin Mandia will become CEO of the cybersecurity software firm, with current CEO and Chairman David DeWalt becoming executive chairman of the board, effective June 15. In Q1, FireEye lost 47 cents a share, slightly narrower than the prior-year quarter’s 48-cent per-share loss and ahead of views for a 50-cent per-share loss. Revenue rose 34% to $168 million, short of estimates for $171.8 million. Q2 guidance for a loss of 38-40 cents a share and $178 million-$185 million in revenue is worse than views for a 36-cent per-share loss on $192.8 million in revenue. For the year, it sees a per-share loss of $1.20-$1.27 on $780 million-$810 million in sales vs. views for a $1.25 per-share loss and $828.6 million in revenue. Shares sank nearly 7% after hours.