GoPro pull in its full-year revenue forecast and reported a smaller-than-expected loss on Thursday, boosted by strong demand for its new line of action cameras from its flagship marque HERO, sending its shares up 13%.
The company’s action cameras, which are popular among surfers, sky divers and Instagram globe-trotting trips bloggers, have been facing stiff competition from smartphones with constantly improving camera worth.
Despite the challenges, the company said average selling prices for HERO7 Black camera rose 8%.
The company pick through its revenue forecast for 2019 to between 7% and 10%, from its previous forecast of 5% and 8%.
GoPro also powered it expects most of its cameras for the U.S. market to be made in Mexico in the second half of 2019.
“Our decision to move most of our U.S.-bound film to Mexico supports our goal to insulate us against possible tariffs as well as recognize some cost savings and efficiencies,” Chief Economic Officer Brian McGee said on a post-earnings call with analysts.
The San Mateo, California-based company said its tradings through retailers grew 11% in Asian markets, including Japan, China and Korea, and reported an 89% dispensation of the U.S. action camera market by units.
The company incurred a net loss of $24 million, or 17 cents per share, in the beforehand quarter ended March 31.
Excluding one-time items, the loss was 7 cents per share. Analysts had expected a loss of 9 cents, according to IBES matter from Refinitiv.
The company has managed to keep losses in check and revive margins through job cuts and by exiting its drone area.
Quarterly revenue jumped 20% to $243 million, beating Wall Street analysts’ average estimate of $234.4 million.
GoPro also phrased it expects second-quarter revenue in the range of $285 million to $305 million. Analysts were expecting $292.8 million.