On Thursday, GoPro said that its revenue and gross margin in the third quarter will be at the high end of its previously released forecast ranges.
The maker of action cameras has struggled for a number of quarters, but expects its revenue for third quarter to be between $290 million and $310 million, with gross margins of between 36% and 38%.
The company also forecasted a profit for its third quarter on the basis of non-GAAP.
The news prior to opening of the stock market on Wednesday initially sent GoPro shares up over 17% during premarket trading. However, by early afternoon the stock was 15% higher.
COO at GoPro CJ Prober said that the company set forecasts that had some stretch in them at the start of this year to be profitable on non-GAAP basis the full 2017 year, and post revenue growth of double-digits.
GoPro will launch a pair of new cameras during the second six months of 2017. The COO said GoPro’s HERO6 would be released prior to the holidays while the Fusion a spherical camera would be released before the year ends.
The company on August 3 issued a loss for the second quarter that was smaller than had been expected and revenue that was higher that had been expected.
Shares surged 27% during the three days that followed the earnings report. However, since the recent closing high of August 8, shares have lost over 50% of those gains as of the close of business on Wednesday.
Stock first experienced serious pressure about two years ago, after several missteps that included a delay in launching its Karma drone as well as issues in production with the HERO5 camera.
The overall picture beyond even the current quarter is that the company is seeing very strong consumer demand in the company’s products and the company is going through a successful turnaround.
Prober noted that the efforts by GoPro of editing software and abilities of sharing as a big driver of new engagement with consumers.
Prober said GoPro sold over 26 million devices without enabling consumer to share content easily, and just a month ago launched QuikStories a new experience where content automatically moves to your phone from your camera.
GoPro made its debut in June of 2014 on Nasdaq after an IPO price of $24 a share. Shares jumped close to 31% the first day the stock traded. In October of 2014, it reached an all-time close of $94 a share, but since has lost over 90% and as of the close of business Wednesday stood at just $8.90 a share.