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GoPro shares plunge 19% after it cut its second-half outlook, citing Hero8 shipment issues

GoPro CEO Purloin Woodman

Photo by Josh Edelson

GoPro on Wednesday cut its revenue and profit forecasts for the rest of the year, hit by a delay in staging of its latest Hero8 Black cameras, triggering a 19% drop in its shares.

The company, which launched two new cameras cataloguing a ramped-up version of its “HERO” line on Tuesday, said it would ship the cameras in the fourth quarter instead of the third shelter as planned earlier.

The action camera maker said there was a “late-stage production delay” that would direction to a fall in revenue, but did not provide any details.

The company forecast annual growth of 6% to 9%, well below its aforementioned estimated rise of 9% to 12%.

GoPro is trying to differentiate its premium-priced products from smartphones with advanced cameras, including its flagship HERO line and spherical camera Fusion, as it looks to lure back action junkies.

On Tuesday, the associates launched Hero8 Black, priced at $399 and a new dual-lens GoPro Max camera at $499. It also slashed the price of its top-selling goods Hero7 Black, launched last year.

It now expects to post an adjusted profit of between 33 cents and 39 cents per portion for the second half of the year, compared with its prior forecast of 37 cents to 49 cents.

The company fine fettled its 2019 revenue forecast to between $1.22 billion and $1.25 billion, from a prior forecast of $1.25 billion to $1.28 billion.

Parts of the California-based company were on track for its worst intraday performance this year, if losses hold on Thursday.

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