Action-camera maker GoPro reported second quarter earnings after the bell on Wednesday. Shares quickly rose 10 percent in after-hours trading, but then were down 3 percent as investors dug through the earnings release. And then they were back up about 3 percent.
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The company posted revenue of $220.7 million, above analyst forecasts of $194 million. Adjusted earnings per share was negative 52 cents, when Wall Street was expecting them to be down 58 cents. But this wasn’t enough to appease some investors, who are concerned about declining sales. Revenue for the same period last year was $420 million.
“GoPro is well-positioned for the second half of the year. We now have a simple product line, a clean retail channel and clear indications of strong consumer demand,” said GoPro founder and CEO, Nicholas Woodman, in a statement.
Investors have been skeptical of GoPro, which has seen shares down over 80 percent in the past year. The company has struggled to grow and has even seen sales decline in recent quarters.
Part of the issue has been that many GoPro customers don’t upgrade to the newer devices. The initial hardware purchase is enough to satisfy them for several years.
To offset these declines, GoPro has been trying to position themselves as both a media company and virtual reality company. GoPro has been encouraging customers to use the camera for livestreaming and has announced partnerships, including one with Periscope.
The company also developed a VR rig, aimed at capturing 360-degree footage.
And while positioning itself as an action sports company has been great for getting professional athletes to use GoPros, many consumers feel that they don’t have a regular need for this type of camera.