GoPro (GPRO) - Get GoPro, Inc. Class A Report analysts at two investment banks are out with reports Friday that show expectations for the camera maker's shares may not be anything to write home about.
The San Mateo, Calif.-based tech company's posted first-quarter revenue that was half of what in brought in at the same time last year.
GoPro analysts at Oppenheimer expect the stock to give an average performance, while those that follow the company at Piper Jaffray expect a below-average performance.
GoPro reported revenue of $183.5 million, down from $363.1 million in the year-ago quarter. The first-quarter net loss of $107.5 million is down from a net gain of $16.8 million last year.
The large revenue decrease from the first quarter of 2015 was not unexpected. The company projected revenue of between $160 million to $180 million, meaning the company posted revenue figures above its guidance range.
The camera seller's shares traded at $10.28, down 4%, in Friday midday trading. The stock is significantly below its 52-week high of $65.49 a share.
One key point GoPro management made on Thursday's after-market conference call was the company's initiative to move into the mobile space, specifically through its purchase of video-editing apps Splice and Replay, now named Quik. The two apps, acquired in February, will eventually be integrated into a single platform, management said on the call.
"Historically, we've seen it as a content-enabling platform for people that own a GoPro," CEO Nicholas Woodman said on the call. "And now moving forward, we've expanded our view to look at GoPro as a platform to enable anyone with a GoPro or with a smartphone to help them create terrific content."
A GoPro representative was not immediately available for comment.
The Splice-Replay acquisition and integration represent the company evolving, said Oppenheimer's Andrew Uerkwitz.
"2016 clearly was a transition year for GoPro," Uerkwitz said. "Their focus is clearly on building a software ecosystem to support product sales."
The senior analyst said GoPro's management is "juggling multiple initiatives," which include not only the new efforts on mobile devices, but also the launch of its Karma drone product, which was delayed until the holiday season. The company originally announced Karma would be released in the first half of 2016.
In earnings reported Thursday after markets closed, the company reported a lower gross profit margin than expected due to an $8 million charge related to older products.
Piper Jaffray senior research analyst Erinn E. Murphy could not be reached for comment Friday.