First Free Story (1 of 3)Join Skift Pro
GoPro Inc., the maker of wearable cameras used by surfers and sports enthusiasts, reported fourth-quarter profit and sales that beat analysts’ estimates, helped by demand for its pricier new model during the holidays.
Earnings per share totaled 99 cents, the San Mateo, California-based company said in a statement Thursday. Analysts projected 70 cents, the average of estimates compiled by Bloomberg.
Before the holidays GoPro introduced a high-end version of the Hero4 camera, which costs $500. Before that model was introduced in September, its most expensive product cost $400. The company has also been working to make money from advertising and partnerships related to videos uploaded from its cameras to YouTube and deviced such as Microsoft Corp.’s Xbox.
Sales in the quarter surged 75 percent to $633.9 million, exceeding the company’s forecast of $550 million to $580 million. Analysts projected $581.9 million, on average.
GoPro shares were halted in trading after the close. They closed up 4.8 percent to $54.37. The stock has more than doubled since going public in June at $24.
The stock has tumbled in recent weeks on concerns about overseas growth and saturation in the market for action cameras. Investors are also scrutinizing whether GoPro employees will drive the price down by selling their shares, when a regulatory lockup on sales of almost half the outstanding shares lifts on Feb. 17, said Charlie Anderson, an analyst at Dougherty & Co.
This article was written by Peter Burrows from Bloomberg and was legally licensed through the NewsCred publisher network.