GoPro Inc (NASDAQ:GPRO) shares rallied more than 14% on Friday after the company’s third-quarter results. The action camera maker’s Q3 revenue jumped 10% YoY to $280 million, beating the consensus estimate of $264 million. Non-GAAP earnings of 12 cents were also above Wall Street expectations of 8 cents. GoPro shipped 1.08 million units, a 32% YoY growth. Adjusted EBITDA of $35.2 million was up 320% YoY.

GoPro

Don’t worry about Asia-Pacific, EMEA sales decline

FBN Securities analyst Shebly Seyrafi said in a research note that GoPro has a strong product cycle “that is just beginning.” Calling the Q3 results a “blowout quarter,” Seyrafi reiterated an Outperform rating on the stock and raised the price objective from $90 to $100. The company’s third-quarter gross margins of 44.5% exceeded the company’s target range of 42%-44%.

Sales in North America grew 122% YoY to $205 million. However, bears may argue that revenue from Asia-Pacific fell 12% to $24 million, and EMEA revenue tumbled 30% YoY to $51 million. FBN Securities says the decline was largely due to GoPro’s deliberate move to reduce channel inventory ahead of the Hero 4 release. GoPro expects sales in every region to jump in the fourth quarter.

GoPro geography

GoPro’s unit sales to double this quarter

On September 29, the San Mateo-based company announced its Hero 4. The company said it has seen strong consumer demand for its new high-end camera. GoPro has also launched an entry-level camera named Hero to expand its addressable market. With new capture devices, FBN Securities expects unit sales to double to 2.1 million units in the fourth quarter.

The company has guided current quarter revenue of $550 million to $580 million, which indicates a 56% YoY growth at midpoint. Gross margins are expected to be around 44%. Shebly Seyrafi says Hero 4 Black, priced at $499, will be the top seller during the quarter. The research firm says the company’s gross margins and average selling price (ASP) have significant upside potential in the near-term. Investors should buy the stock at current levels.

GoPro shares gained 2.96% to $79.37 in early trading session Monday.