NEW YORK (TheStreet) -- GoPro's (GPRO) - Get Report earnings estimates were raised for fiscal 2016 to 97 cents from 86 cents at Pacific Crest this morning, after the company reported better than expected fiscal 2016 second quarter results on Wednesday.
After the market close, the San Mateo, CA-based action camera maker reported an adjusted loss of 52 cents per share on revenues of $221 million, vs. analysts' estimates of an adjusted loss of 58 cents per share on revenues of $194 million.
GoPro shipped 759,000 units in the second quarter, representing 8% growth from the previous quarter.
The company's positive results and higher ASPs drove Pacific Crest to increase the company's earnings estimates, according to the analyst note.
The firm has a "sector weight" rating on the stock and believes the company's drone release will drive growth through the next quarter. "With the channel clear and new product channel fill set to start in Q3, we see a period of limited near-term downside risk in GPRO," Pacific Crest said.
In order to become more positive on the stock, the firm said it would need to see signs that new products will perform well long-term, not just short-term. "We continue to have long-term reservations about how new products will fare vs. expectations," Pacific Crest wrote.
Shares of GoPro are up 5.10% to $12.16 in early-morning trading on Thursday.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate GOPRO INC as a Sell with a ratings score of D. This is driven by a number of negative factors, which we believe 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 we cover. 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.
You can view the full analysis from the report here: GPRO