The action camera maker will report its financial results for the fourth quarter soon; financial results for the third quarter were quite unimpressive.
GoPro, Inc.’s stock has plunged by as much as 24% during the pre-market trading on January 14, 2015. This drop in the shares happened when the announcement of a weak fourth quarter of fiscal year 2015 along with a number of new layoffs came out. Since the beginning of fiscal year 2015, the stock of the action camera maker has managed to drop by as much as 80%. Analysts believe this drop could have been due to the weakness prevailing in the action camera making market.
In order to promote essential growth initiatives and invest its resources for the purpose, the camera manufacturer has planned on reducing its workforce by about 7%. During the first quarter of the latest fiscal year, the company is expecting to incur cost of as much as $5-10 million which could account mostly to severance cost.
However in the fourth quarter it is expecting to report revenue of $435 million in comparison to the analyst’s consensus of $511.9 million – evidently the stock experts are expecting too much from the camera manufacturer. Due to the low sales of its latest product, Hero4 the company slashed the price of the device by twice to $200. Weaker than expected financial results were reported by the company for the third quarter of the current fiscal year as well.
GoPro, Inc. went public back in June 2014 and this drop in the stock price has been the lowest the price has been at since then. The chief executive officer, Nick Woodman has been named as the most paid CEO of year 2015 in the United States with a package worth $281.2 million. According to the data provided by Bloomberg, now the compensation of the CEO has dropped down to $71.4 million. Additionally, his net worth dropped down from $1.6 billion to $850 million.
In other news, after being appointed to the Board of Directors of GoPro Entertainment, Zander Lurie, the senior vice president of the action camera maker, gave in his resignation as well. Zander is expected to become the CEO at SurveyMonkey, Inc. by the end of this month.
Currently the stock of the action camera maker is being traded at a stock price of $12.01. The earnings per share reported by the technology company are 1.20 with a price to earnings ratio of 9.98. The current market capitalization of the organization is 1.65 billion.
The analysts are being quite cautious with the stock of the company, at this point due to the declining demand of these cameras.
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