GoPro (GPRO) is up 12% premarket after the company raised guidance for the third quarter ahead of the company's presentation at the Citi Global Technology Conference later today.
GoPro said third quarter revenue and gross margin would be at the high end of guidance, which previously called for revenue of $290-310 million and gross margin of 36-38%. Revenue at the high end of the range would represent an impressive growth rate of 29% year-over-year.
What's more, GoPro also forecasts the third quarter to be profitable on a non-GAAP basis, though not profitable on a GAAP basis. Wall Street had expected the company to report a modest net loss on a non-GAAP basis. This marks the first profitable quarter for the marker of wearable cameras since the third quarter of 2015. This is also the third straight quarter the company was able to exceed Wall Street estimates on the top and bottom line.
"Consumer demand for GoPro products is strong," said GoPro Chief Operating Officer CJ Prober. "Channel inventories have been reduced and we're incredibly excited about the upcoming launch of two great new products, HERO6 and our 5.2K spherical camera, Fusion."
GPRO faces considerable resistance near the $10 level. The stock has been out of favor after falling from grace in 2015 and last year. However, 25% of the float is sold short.
The stock trades at ~1x sales for fiscal 2017 and the enterprise value of ~$1.4 billion trades at a multiple in the low-to-mid-20x profit before interest, taxes, depreciation and amortization.
CJ Prober and Chief Financial Officer Brian McGee are scheduled to present at 2:10pm EDT today at the Citi Global Technology Conference in New York City.