GoPro (GPRO) Stock Plunges on Q3 Miss, Downbeat Outlook

Updated from 4:28 p.m. EDT

NEW YORK (TheStreet) -- Shares of GoPro  (GPRO) were plummeting 22.85% to $9.45 in after-hours trading on Thursday after reporting 2016 third-quarter financial results that missed analysts' projections and issuing downbeat guidance for the fourth quarter and full year. 

After the market close, the maker of action cameras reported a third-quarter adjusted loss of 60 cents per share, far wider than analysts' estimates of a loss of 35 cents per share. 

Revenue fell 39.9% year-over-year to $240.6 million, missing analysts' projections of $313.4 million.

For the current quarter, GoPro expects to report adjusted earnings between 25 cents and 35 cents per share on revenue between $600 million and $650 million. The FactSet consensus is for adjusted earnings of 43 cents per share on revenue of $666 million.

GoPro anticipates full-year revenue between $1.25 billion and $1.30 billion, while analysts are modeling $1.39 billion.

The company expects to be profitable on an adjusted basis and see double-digit revenue growth year-over-year in fiscal 2017.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

GoPro's weaknesses include 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

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 article's author.

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