Get ready for a lot of extreme sports videos from Tiananmen Square and the Great Wall of China.
Action camera maker GoPro (NASDAQ:GPRO) will enter China later this month through Chinese online retailer Alibaba (NYSE:BABA), Brightwire reporter Ding Chenjie said in a post Wednesday on Twitter.
The news brings together two of the hottest IPOs in recent times. GoPro went public on June 26 at 24 and now trades near 79. Alibaba went public on Sept. 19 at 68 and trades near 109.
In the third quarter, GoPro generated 73.2% of its sales in the Americas region. Its second largest market is the Europe, Middle East and Africa region, with 18.2% of Q3 sales. The Asia Pacific region generated the remaining 8.6% of sales in the September quarter.On a conference call with analysts on Oct. 30, GoPro CEO Nicholas Woodman said, “We look at Europe and APAC (Asia Pacific) as some of the biggest opportunities we have going forward.” But he didn’t offer any details about entering the China market.
GoPro gave Q4 guidance that pointed to a big holiday sales period. For the December quarter, GoPro expects EPS excluding items of 65 cents to 69 cents, vs. analyst expectations for 55 cents. GoPro is targeting sales of $550 million to $580 million, an increase of 55% year over year at the midpoint. Analysts were modeling for $505 million.
When asked on the call if the company’s Q4 guidance included expectations for China and Asia, Woodman said that it reflected strong across-the-board demand for GoPro products.
Read More At Investor’s Business Daily
