GoPro Inc (GPRO) shares touched new lows on Monday after the company projected its fourth-quarter revenue that fell short of consensus forecast. The manufacturer of cameras and mountable and wearable accessories also plans to lay off around 200 employees and intends to leave the drone market.
The company forecasted revenue of $340 million for Q4. The projection is well below analysts’ average estimate of $472 million.
GoPro has been experiencing a decline in sales of its cameras and karma drones in the recent past. The demand for its Hero5 cameras also decline in the 2017 holiday shopping season. CEO Nicholas Woodman said in a statement that “as we noted in our November earnings call, at the start of the holiday quarter we saw soft demand for our HERO5 Black camera.”
Woodman added that “despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier.”
GoPro stock plummeted more than 30 percent this morning, hitting a new 52-week low of $5.04.