Shares of GoPro Inc. traded higher at 14.2% during the course of the session on Thursday after reports from action camera and drone specialist, announced revenue for the first quarter to be at the high end of its previous outlook.
For a clearer view, the action camera developer is now expecting revenue for the first quarter of 2017 to settle at the high end between the range of $190 million to $210 million. Moreover, the company decided to reiterate its full-year target of recouping profitability on a non-GAAP basis.
Given the restructuring announcement last November, eliminating 270 current and open positions was included, along with the closing of its media segment.
However, the company said that job cuts will not affect its plans for setting up latest hardware and software products.
"We're determined that GoPro's financial performance match the strength of our products and brand,” said GoPro CEO Nick Woodman.
It appears that this isn’t the first time GoPro had initiated layoffs. In fact, the company had two rounds of layoffs, with 7% job cuts in January, and 15% in November. Meanwhile, the action camera developer recorded an operating loss of $373 million last year.
Thus, the company currently anticipates full-year GAAP operating expenses to settle below $585 million from last year’s $834.9 million readings, while non-GAAP operating expenses is expected to fall below $495 million from last year’s 708.8 million readings.
Out of the 20 analysts covering Go Pro Inc., 4 of which gave a Buy rating, 8 Sell and 8 Hold, suggesting a positive evaluation of about 20%. Additionally, the company’s highest target stood at $9, while $5 as the lowest.
The stock’s average target of $22.13 posted above its current stock price of $8.42, or 162.83%.
The chart below illustrates the GoPro Inc stock’s movement after trading higher after the action camera and drone specialist announced that the revenue for the first quarter to be at the high end of its previous outlook.
The stock is currently changing hands $8.62 in a heavy trading volume of 2871, near support 8.07.
Hence, given trails of recovery, the RSI nearly tests level 48.1450. Thus, it could give signs that it would next test the stability level. However, it is still unsure if it will fall down or surge.
As shares of GoPro Inc. posted gains in today’s session, investors begun to add the stock on their watch list as it is expected that market players will focus on the company’s next first quarter revenue results.
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