GoPro shares fall 15% on disappointing results

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GoPro Inc.’s stock is a no-go after it reported quarterly results that underwhelmed Wall Street.

Its shares were down 15% in extended trading Wednesday following disappointing revenue and earnings.

The digital-camera company reported fourth-quarter revenue of $528 million, vs. $566 million expected by analysts polled by FactSet.

GoPro GPRO, +5.06%  said net income was $96 million, or 65 cents per share. FactSet had projected 70 cents per share.

“We believe we are well-positioned to meaningfully expand both margin and EPS in 2020 thanks to the strength of our entire product line, high-margin Plus subscription service and app monetization strategy,” GoPro Chief Executive Nick Woodman said in a statement announcing the results.

In the same quarter a year ago, GoPro racked up $32 million in net income, or 22 cents a share, on revenue of $377 million.

Production issues, which have bedeviled GoPro during previous holiday seasons, were the culprit again.

“We think lackluster holiday sales drove results below the high end of GoPro’s guidance, and as such, we lowered our Q4 estimates to the mid-point,” Wedbush Securities analyst Michael Pachter said in a cautionary note issued Jan. 31.

GoPro shares have sunk 15.3% the past 12 months, compared to a 22.1% gain for the broader S&P 500 SPX, +1.13%  .