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GoPro’s shares wipeout on slow sales

October 28, 2015

GoPro Inc's founder and CEO Woodman holds a GoPro camera as he celebrates GoPro Inc's IPO at the Nasdaq Market Site in New YorkGoPro Inc's founder and CEO Woodman holds a GoPro camera as he celebrates GoPro Inc's IPO at the Nasdaq Market Site in New York
GoPro CEO Nick Woodman Photograph by Mike Segar — Reuters

(Reuters) – GoPro reported a lower-than-expected rise in quarterly revenue, hurt by lower demand for its wearable cameras in the Americas.

The company’s shares (GPRO) slumped 14% to $26.05 per share in extended trading on Wednesday.

Revenue from its Americas market fell 7% to $190.8 million. However, revenue from its international market nearly tripled to $209.8 million.

GoPro’s helmet- and body-mounted cameras are popular with surfers, skydivers and other adventure sports enthusiasts.

However, the recent advancement in video-shooting capabilities of smartphones, such as Apple Inc’s iPhone 6 range, is eroding GoPro’s consumer base.

Net income rose to $18.8 million, or 13 cents per share, in the third quarter ended Sept 30 from net income of $14.6 million, or 10 cents per share, a year earlier.

Revenue rose 43% to $400.3 million.

Excluding one-time items, it earned 25 cents per share.

Analysts on average had expected the company to earn a profit of 29 cents per share on revenue of $433.6 million, according to Thomson Reuters I/B/E/S.

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