GoPro increases revenue forecast on strong demand for new cameras

(Reuters) – GoPro Inc. has raised its revenue forecast for the year and announced a smaller-than-expected loss on Thursday, driven by strong demand for its new line of action cameras from its flagship HERO brand. his shares of 13%.

The company's action cameras, which are popular among surfers, celestial divers and Instagram travel bloggers, have faced fierce competition from smartphones and the constant improvement in the quality of their cameras.

Despite the difficulties, the company said that the average selling price of the HERO7 Black camera increased by 8%.

The company has raised its revenue forecast for 2019 between 7 and 10%, compared with its previous forecast of 5% and 8%.

GoPro also said it expects most of its cameras for the US market to be manufactured in Mexico in the second half of 2019.

"Our decision to transfer most of our US-destined production to Mexico is in line with our goal of protecting ourselves against potential tariffs and recognizing certain efficiencies and savings" , said CFO Brian McGee, during a post-profit interview with analysts.

The San Mateo, Calif.-based company said sales through retailers grew 11 percent in Asian markets, including Japan, China and Korea, and announced an 89 percent market share American action cameras.

The company recorded a net loss of $ 24 million, or 17 cents per share, in the first quarter ended March 31.

Excluding non-recurring items, the loss is 7 cents per share. Analysts were expecting a loss of 9 cents, according to Refinitiv's IBES data.

The company has managed to limit its losses and revitalize its margins through job cuts and cessation of drone operations.

Quarterly revenues jumped 20% to $ 243 million, exceeding the Wall Street analysts average estimate of $ 234.4 million.

GoPro also announced revenues of between $ 285 and $ 305 million in the second quarter. Analysts were expecting $ 292.8 million.