GoPro Inc. shares reached a low since they began trading last year, after the maker of action cameras reported profit and sales that trailed analysts’ estimates amid growing concern that it’s a single-product company.
The shares slid 15 percent to $25.62 at the close Thursday in New York, their lowest since they began trading in June 2014. The decline, the most since the initial public offering, left the stock down 59 percent this year. Analysts at Cowen & Co. and Piper Jaffray Cos. downgraded GoPro’s stock.
The company said the smaller Hero4 Session model introduced in July didn’t sell as well as it expected in the third quarter and its September price cut hurt revenue. Fewer U.S. consumers plan to buy a GoPro device in the next year, Citigroup analysts led by Jeremy David wrote in a note in June, citing a survey. The growing popularity of drones may also eat into sales of GoPro’s flagship action camera, according to the analysts.
“GoPro has been on quite the wild ride since its IPO last year,” James Gellert, the chief executive officer at Rapid Ratings, said in an e-mail. “Missing expectations this quarter certainly wasn’t what management was looking for, but there were some positives to take out of the report and they’re positioned positively enough that they can weather a short-term storm such as this.”
Third-quarter profit, excluding some items, was 25 cents a share on revenue of $400.3 million, the San Mateo, California-based company said in a statement Wednesday. Analysts had projected, on average, profit of 29 cents and sales of $433.6 million.