GoPro released its latest earnings report after closing bell tonight, posting adjusted earnings of 25 cents per share on revenue of $400.34 million. Analysts had been looking for earnings of 30 cents per share and $433.4 million in revenue. In last year’s third quarter, the company reported earnings of 12 cents per share and $280 million in revenue.

GoPro Inc Stock Slides After Earnings Miss

Management had guided for earnings to be between 29 cents and 32 cents per share and for revenue to be between $430 million and $445 million.

GoPro management: quarter “more difficult than anticipated”

On a GAAP basis, GoPro’s earnings were 13 cents per share, compared to last year’s 10 cents per share in earnings. Adjusted EBITDA was $56.7 million, a 56.8% increase from last year’s $36.2 million. GAAP gross margin increased 230 basis points to 46.6%, while non-GAAP gross margin rose to 46.8%.

International sales were over half of GoPro’s total third quarter revenue.

“I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated,” GoPro Founder and Chief Executive Nicholas Woodman said in a statement. “GoPro is entering the holidays with an industry-leading lineup backed by great software solutions and a globally-recognized brand. We are excited about our business and the investments we continue to make to scale GoPro into its next phase as a product, software and entertainment company.”

Bearish views on GoPro pre-earnings

Sentiment on GoPro was very negative going into tonight’s earnings report. Multiple firms cut their price targets over the last several weeks, although JPMorgan suggested that the widely bearish view could work in the company’s favor. Even tough GoPro has exceeded consensus estimates in every quarter since it went public last year, shares have plummeted by 50% since the last earnings report as investors worry about sales of GoPro’s Session camera.

Management recently decided to slash the price of the camera just to move some inventory because it has been highly unpopular so far. Another concern has been the lack of any new camera models in time for the holiday season, which some believe will mean that the December quarter will be a difficult one.

GoPro guidance

GoPro management didn’t provide guidance in the press release tonight. Analysts are expecting earnings of about 94 cents per share and revenue of approximately $748 million for the December quarter.

As of this writing, shares of GoPro were down 12.45% at $26.45 per share in after-hours trades.