NEW YORK (TheStreet) -- Shares of GoPro (GPRO) - Get Report are surging by 10.11% to $12.74 on Thursday morning, after the action camera maker reported a narrower than expected loss for the 2016 second quarter.
GoPro posted a loss of 52 cents per share on revenue of $220.76 million for the most recent quarter. Analysts surveyed by Thomson Reuters had forecast for a loss of 58 cents per share on revenue of $194.31 million.
This marked GoPro's third consecutive quarterly loss.
GoPro CEO Nick Woodman appeared on CNBC's "Squawk Alley" on Thursday morning from San Francisco to discuss the company's financial results and what it can do going forward to draw in more customers.
The company is now tasked with delivering new hit products in time for the holiday shopping season and CNBC reporter Josh Lipton asked Woodman why investors should believe the company can pull it off.
"We've been doing it for 14 years. Thirteen of those 14 years have been terrific. Last year we hit a bit of a speedbump because we didn't have enough new product and we didn't have enough innovation and advancement in our value proposition for consumers and we paid for it," Woodman said.
However for this year the CEO believes the company is moving in the opposite direction as the later part of the year will be "loaded with the largest new product introduction in the history of GoPro."
Woodman understands how investors may have lost faith in the company's ability to make good on its new product promises given the year the company had. However, he noted that your favorite sports team can't win the championship every year.
"When evaluating GoPro it's important to recognize we have been at this for 14 years. We have been successful for 13 out of those 14 years. The brand is known for innovation, our customers love us for the solutions we deliver...and our track record proves for itself. I think one year doesn't define a company," Woodman said.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on GoPro stock. This is driven by a number of negative factors, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GPRO