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GoPro swings after results; sales fall 50%

Battered wearable-camera maker GoPro on Thursday posted better-than-expected quarterly revenue, but said sales plunged about 50 percent from the prior-year period.

The company reported a first-quarter loss of 63 cents per share on $183.5 million in revenue. Those figures compare with earnings of 24 cents per share and sales of $363.1 million in the year-earlier period.

Wall Street expected GoPro to report a loss of 60 cents per share on $169 million in sales, according to a Thomson Reuters consensus estimate.

"Consumer demand for GoPro remains solid," said Nicholas Woodman, GoPro's founder and CEO in a statement.

Its shares rose 7 percent in after-hours trading before reversing and going negative.

GoPro shares have dropped 38 percent this year as the company warned of sagging sales and cost cuts. Once a Wall Street darling, the company has struggled to boost wider adoption of its devices.

It shipped 701,000 units in the quarter, down about 48 percent from 1.3 million in the prior-year period. Wall Street expected 727,000 shipments, according to StreetAccount.

GoPro reaffirmed its guidance for $1.35 billion to $1.5 billion in full-year sales. That range would mark a year-over-year sales decline.

GoPro is looking to the upcoming release of its drone camera as a possible catalyst for growth. Its release was previously pushed back.

"While we had to make the difficult decision to delay our drone, Karma, the upside is that Karma's launch should now benefit from the holidays," Woodman said.

Its stock does not look appealing outside of its potential as a takeover target, argued Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management.

"It would be a wonderful addition to many companies, but beyond that I just don't have a lot of hope," he told CNBC's "Closing Bell."