In a day in which the walking dead were on the verge of going green (Twitter nearly wiped out its entire loss following last night's earnings), there was some hope that momo stocks would finally make a come back. Alas, for the company which we first dubbed "camera on a stick" it was just not meant to be.
Moments ago GoPro announced Q3 sales and EPS of $400.3 million and $0.40. All else equal, the 43% increase in the topline would have been sufficient, but alas it was another case of badly mismanaged expectations, and with Wall Street expecting a $433.6 million in sales and $0.45 in EPS, yet another company was relegated from the "story" growth category and into the borderline value trap bucket.
As a result, the CEO's cheerful remarks...
"I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated," said GoPro Founder and CEO, Nicholas Woodman. "GoPro is entering the holidays with an industry-leading lineup backed by great software solutions and a globally-recognized brand. We are excited about our business and the investments we continue to make to scale GoPro into its next phase as a product, software and entertainment company."
... Fell on deaf ears.
And worst of all was perhaps the company's own admission that it is no longer a "momentum growth" stock when it announced that "The Board of Directors of GoPro authorized the Company to repurchase up to $300 million of its Class A capital stock, commencing in the fourth quarter of 2015."
And like that the growth magic is over, and the result GPRO stock which has crashed as much as 15% after hours plunging to never before seen levels.
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