GoPro to lay off 270 people, expects full-year profitability in 2017

Mar 17, 2017, 01:25
GoPro to lay off 270 people, expects full-year profitability in 2017

"While GoPro's pre-announcement was likely aimed at quelling the shorts, questions remain around new product innovation amid such drastic cost cuts". It experienced production delays on its Hero5 camera. The recall of the Karma drone was also partly responsible for the losses. Likewise, it expects 2017 GAAP operating expenses to be below $585 million, revised from its previous below $688 million guidance.

GoPro is now claiming it will be business as usual as it takes a sledgehammer to costs. Teachers Advisors LLC now owns 1,091,694 shares of the company's stock valued at $18,209,000 after buying an additional 765,645 shares during the last quarter. (NASDAQ:GPRO) where Goldman provided Sell rating on the stock on 6-Mar-17. It also says that it'll be able to significantly reduce operating expenses without interfering with the hardware and software roadmap. Woodman pointed out to analysts that the company launched a drone, new cameras and an editing software past year.

Stifel reiterated a hold rating and sliced its 12-month target by a dollar to $9, saying that such sharp expense reduction "raises questioning about fundamental impact", including the outcome less marketing will have on demand and whether the company will be able to execute new product launches successfully.

GoPro has had a rough go of it ever since going public. The stock price of the camera company hit an all-time low peak this past few week, though it was higher more than 10 percent compared to hours trading following the news. Some of those bets didn't work out.

GoPro, Inc. (NASDAQ:GPRO) fell -5.02% to reach at the trading price of $7.57 as it is set to release its next quarterly earnings report on May 03, 2017. GoPro has not yet returned a message from Barron's Next, seeking more details on the changes. "This cost cut appears to be excising the last of the non-core spending since the IPO", wrote Barclays analyst Joseph Wolf.

The stock's jump Thursday was the biggest intraday gain since April 2016.

GoPro just announced a reduction in its manpower. It has had to reassure shareholders that it won't need to raise funds to keep its doors open.

While Looking at Sales Growth (Year/est), the company is now showing a percentage value of 50 percent.