GoPro expects to post adjusted profit in third-quarter; shares jump

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(Reuters) – Wearable camera maker GoPro Inc (GPRO.O) said on Thursday it expects to be profitable on an adjusted basis in the third quarter, sending its shares up 17 percent.

The company said it expects current-quarter revenue and gross margins to be at the high end of its forecast of $290 million to $310 million and 36 percent to 38 percent, respectively.

GoPro said it expects to benefit from its upcoming Hero6 and Fusion 360 action-cameras.

The company’s body-mounted point-of-view cameras won a huge following among action junkies such as surfers and skydivers, but sales took a beating in the past few quarters after a series of missteps including a delay in the launch of its Karma drone and production issues with its Hero5 camera.

Since then, the company has focused on the launch of the Hero 6 and the Fusion 360 cameras in an effort to woo customers.

GoPro, however, said on Thursday it expects to post a third-quarter loss on a GAAP basis, or before excluding one-time items.

The company had previously forecast third-quarter adjusted loss of 1 cent to 11 cents per share.

Analysts on average are expecting a loss of 5 cents per share and revenue of $304 million, according to Thomson Reuters I/B/E/S.

The company’s shares were up 16.9 percent at $10.40 in premarket trading.