GoPro shares logged a double-digit gain on Friday on the back of its strong quarterly financial results, which blew past consensus expectations of major analysts.
Shares of the wearable video-camera maker ended the week on a winning note as it registered 20% advancement in the stock market to close at $9.60 per share.
The rally was prompted by the robust earnings recorded in the second quarter as a result of the firm’s restructuring activities, job cuts, and cost reductions in camera and drone making.
For three months ending June, the company earned a total revenue of $297 million, 34% higher compared to last year’s total revenue of just $221 million. The firm also had an adjusted net loss of 66.7% to go down to $31 million from $92 million in the previous year.
Analysts have expected a share deficit of $0.25 but the company just posted adjusted loss of just $0.09 per share as a result of Go Pro’s massive cost-cutting efforts.
According to the firm’s chief executive, Nick Woodman, as GoPro continued to gain popularity among adventurous people, the firm will still undergo expansion in the future years. He stressed that the company is growing and that it still remain open for international growth.
In just a single year, GoPro shares have slipped almost 40% amid struggles on keeping decent profits despite delays and recalls of the firm’s drone. Additionally, the rising competition against phone cameras in the market has put more pressure to the company’s profit-making.