GoPro earnings beat Street, but shares slide

GoPro reported earnings of 8 cents per share and revenue of $245 million, beating Street estimates. Shares fell 11 percent after the report.

Analysts had expected the company to report earnings, excluding items, of 6 cents a share on $238 million in revenue, according to a consensus estimate from Thomson Reuters.

Ignoring the one-time items, the company reported a loss of $19.8 million in the second quarter.

The company's second-quarter revenues jumped 38.1 percent over the year-ago period, when it generated $177.1 million as a privately held firm.

"We are seeing a tremendous volume of quality content generated by our users and a 200 percent year-over-year increase in video views on YouTube, which is fueling our virtuous cycle whereby viewership of GoPro content drives sales," said GoPro CEO Nicholas Woodman, in a statement. He cited the Hero 3+ Black Edition and various accessories as sales of various accessories as leaders.

Although the company is profitable and enjoys solid sales, some traders remain leery.

"Management's great; the product's great," says Brian Hamilton, chairman of Sageworks. "But right now they're overvalued. Basically, they are double the relative value that they were when they came out, so that's the real problem with this stock."

David Paul Morris | Bloomberg | Getty Images

This report marks GoPro's first as a public company. The wearable camera maker raised more than $400 million in funding when it made its market debut last last month, making it the largest initial public offering of a consumer electronics firm in two decades.

GoPro recently reinvested in video production to cater to its users, and it has landed video channel deals with Microsoft's Xbox One, Google's Youtube and Virgin America. Still, some analysts have questioned whether it can transform into a successful media company in the long run.

As of Thursday's close, GoPro shares have roughly doubled since its public debut.