GoPro posts wider-than-expected loss: Guidance for Q1 revenue misses, shares crash

• Akin Oyedele
 
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• 3h
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Screengrab via YouTube

GoPro reported really ugly fourth-quarter results on Wednesday.

The digital-camera maker posted an unexpected earnings loss as its growth slowed and new products failed to catch on with consumers as expected.

GoPro reported an adjusted earnings-per-share loss of $0.08 and sales of $436.6 million for the crucial holiday quarter.

Shares were halted for news pending just before the earnings announcement and fell by as much as 20% after trading resumed.

Analysts had estimated that GoPro posted $0.02 in adjusted EPS, near the lower end of a range of -$0.01 to $0.17, according to Bloomberg. Revenues were expected at $434.9 million.

Guidance for first-quarter revenue was lighter than expected, at $160 million to $180 million versus $287.2 million expected.

In the earnings statement, GoPro CEO Nicholas Woodman said the company saw the need to improve its software to make it easier for customers to edit content.

The company announced a personnel change, with Brian McGee as the new chief financial officer to succeed Jack Lazar starting March 11.

GoPro last month provided guidance for the fourth quarter that was below expectations.

The company had cited slower-than-expected sales and a lack of product launches in Q4; it announced plans to lay off 7% of its workforce.

During the latest quarter, GoPro cut the price of its new Hero4 Session model, raising analysts' eyebrows and prompting a downgrade on the stock from Morgan Stanley.

The concern was that this model, and others before it, were not quite catching on with consumers who could easily use their phones and other devices to capture and edit point-of-view footage.

GoPro shares had collapsed 80% over the 12 months before the company's earnings announcement, and they were down 71% from the price during the company's June 2014 initial public offering.

Here's a chart showing the drop in shares after-hours:Google

SEE ALSO: One product could be GoPro's next billion-dollar business

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More: GoPro Earnings

Les Moonves in as CBS Chairman after Sumner Redstone steps down

• Jethro Nededog
 
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Michael Seto/Business InsiderThen-CBS CEO Les Moonves at Business Insider Ignition 2015.

CBS Corporation has named Leslie Moonves its new chairman after Sumner Redstone has resigned from the post, according to a release on Wednesday.

The CBS Board of Directors elected Moonves to the position with a unanimous vote.

Redstone, 92 and in declining health, has been named Chairman Emeritus, CBS Corporation.

Shari E. Redstone, Sumner Redstone’s daughter, will continue to serve as vice chair of the CBS Board, a position she has held since 2005.

“I am honored to accept the chairmanship of this great company,” Moonves said in a statement.

“I want to thank Sumner for his guidance and strong support over all these years," he continued. "It has meant the world to me. I am particularly grateful that Shari Redstone has agreed to continue in her role as vice chair of the company. Her business acumen and knowledge of the media space remain very important to me as we move forward, and I greatly appreciate her support and invaluable counsel. I would also like to thank our excellent board of directors, who have contributed so significantly to our success. The people of CBS have achieved much together and I believe the best is yet to come.”

Thomson ReutersSumner Redstone arrives at premiere of "The Guilt Trip" starring Barbra Streisand and Seth Rogen in Los Angeles.

Moonves, who served as CBS Corp.'s president and chief executive officer, oversaw the breadth of the company's entertainment properties, including CBS, The CW, Showtime Networks, and the CBS TV stations.

Meanwhile, Redstone served as chairman of the board of both CBS Corporation and Viacom, which he assumed after the separation of Viacom into two publicly traded companies in January 2006.

Redstone is the controlling shareholder of both companies.

As for the future of Redstone at Viacom, which he also chairs, reports say the Viacom board expects to replace him as chair as well.

SEE ALSO: CBS's 'Rush Hour' defends itself against accusations of racial stereotyping

SEE ALSO: What happens behind the scenes of CBS daytime talk show 'The Talk' from start to finish

NOW WATCH: CBS CEO Les Moonves explains why your future cable bill could be as low as $30 a month

More: TV CBS Sumner Redstone Les Moonves 

Yum Brands sales at established restaurants rise more than expected

• Reuters

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Thomson ReutersA man walks past a logo of KFC, outside a restaurant in Shanghai

(Reuters) - KFC owner Yum Brands Inc , which is spinning off its China business, reported sales at established restaurants rose more than expected in the fourth quarter, helped by strong sales in China.

Global sales at established stores open for more than a year jumped 6 percent in the quarter, handily beating analysts average estimate of 1.80 percent, according to research firm Consensus Metrix.

Sales of established China stores rose 7 percent, also beating estimates of an increase of 1.9 percent.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Savio D'Souza)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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Mall CEO's statement about Amazon opening hundreds of bookstores 'was not intended to represent Amazon's plans'

• Maya Kosoff
 
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• 18h
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Aly Weisman/Business Insider

See Also

Costco is staying ‘Amazon-proof’ as other retailers crumble

What it's like inside Amazon's first brick-and-mortar bookstore

Amazon added more than 76,000 people last year

One day after a report surfaced in which the CEO of a mall said Amazon was planning to open hundreds of bookstores around the US, the same CEO appears to be backtracking his statement.

"General Growth Properties, Inc. Chief Executive Officer Sandeep Mathrani has indicated that a statement he made concerning Amazon during GGP's earnings conference call held on February 2, 2016, was not intended to represent Amazon's plans," according to a statement released by the company Wednesday.

General Growth Properties CEO Sandeep Mathrani had said on his company's earnings call: "You’ve got Amazon opening brick-and-mortar bookstores and their goal is to open, as I understand, 300 to 400." 

A move into larger-scale brick-and-mortar commerce would follow Amazon's decision to open a store in Seattle last November. 

Barnes & Noble shares, which fell 9% on Wednesday following the report, were up as much as 9% in after hours trade on Wednesday after Mathrani’s statement.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

NOW WATCH: Ford is partnering with Amazon to let you control your house from your car

More: Amazon

BANK OF ENGLAND VOTES 9-0 TO HOLD AT 0.5%

• Ben Moshinsky
 

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REUTERS/Arnd Wiegmann

The Bank of England has voted to keep interest rates on hold once again in its February meeting — as analysts had expected.

The BoE has been on hold as far as interest rates are concerned since March 2009, when the monetary policy committee cut Bank Rate to 0.5%.

All nine members of the MPC voted to keep rates as they were. It's the first unanimous vote since July last year.

While MPC Member Ian McCafferty had voted for a 0.25% rise in previous meetings, he changed his position on deflationary risks from the falling oil price.

Here's the key quote from the Bank of England (emphasis ours):

All members agree that, given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles. This guidance is an expectation, not a promise. The actual path Bank Rate will follow over the next few years will depend on the economic circumstances.

And here's Fidelity, the world's second largest fund manager (emphasis ours):

The surprise element, however, was the Monetary Policy Committee’s unanimous vote asIan McCafferty, previously the Bank of England’s lone hawk, capitulated and joined his peers by voting in favour of keeping rates at crisis-era lows. Concerns abound over the outlook for global growth amid worries about emerging markets, in particular China, a slowdown in the US and falling oil prices. Meanwhile earnings growth has dipped below expectations and UK growth has slowed.

NOW WATCH: Wall Street's unbelievable secret history

More: Bank of England Mark Carney Bank of England minutes UK Economy

The clearest sign yet that job growth in the US is about to slow down

The clearest sign yet that job growth in the US is about to slow down  US job growth has been rolling for most of the last two years.  In December the economy added 292,000 jobs with average job gains over the 3 months ending in December totaling 284,000.  But this pace looks set to slow down.  On Monday, the latest Senior Loan Officer Opinion Survey indicated that credit conditions across the economy were tightening, a sign that businesses could be facing more challenges to get additional funding could potentially put hiring plans on hold.  In a note to clients on Wednesday, Don Rissmiller at Strategas Research Partners noted that while US employment growth is still solid, "as the business cycle matures, it is normal for job growth to slow."  "That peak in growth to be happening this cycle based on the Fed's senior loan officer survey," Rissmiler writes. And as far as Rissmiller is concerned this chart is a clear indication that job growth is about to slow down. Read »

Here are the most valuable companies in America since 1990

• Matt Rosoff
 
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 More Charts

 
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Google's parent company Alphabet briefly stole the crown from Apple this week to become the most valuable company by market cap in the United States (and the world).

As this chart from Statista shows, Alphabet is the fourth tech company to hold the top spot since 1990. GE also sells a lot of technology, although it was a broad-based conglomerate with a strong finance arm during its time on top. The only totally non-tech company to top the chart since 1990 is Exxon. 

In midday trading on Wednesday, Apple had reclaimed the top spot from Alphabet. But Alphabet's robust business growth and rising value means the two tech titans are likely to battle for the top spot during the coming months.

Statista

SEE ALSO: Here's how much each employee at a big tech company like Apple or Facebook is worth

China growth to remain weak, deflationary pressure increasing: PBOC researcher

A senior researcher at China's central bank said China's economic growth would remain weak, and it may face increasing deflationary pressure. 

PHOTO: REUTERS

FEB 4, 20169:50 AM

[SHANGHAI] A senior researcher at China's central bank said China's economic growth would remain weak, and it may face increasing deflationary pressure.

Lu Lei, head of research at the People's Bank of China, said that China's economic stability could face rising risks from financial turbulence.

He said the government should take measures this year to prevent excessive volatility in money, currency and stock markets.

Mr Lu's comments were made in an editorial posted on Thursday on the China Finance 40 Forum official webiste.

REUTER
S

Trans-Pacific Partnership trade deal signed, but years of negotiations still to come

The Trans-Pacific Partnership, one of the world's biggest multinational trade deals, was signed by 12 member nations on Thursday in New Zealand, but the massive trade pact will still require years of tough negotiations before it becomes a reality. 

PHOTO: TWITTER/ TODD MCCLAY

FEB 4, 201611:18 AM

[WELLINGTON] The Trans-Pacific Partnership, one of the world's biggest multinational trade deals, was signed by 12 member nations on Thursday in New Zealand, but the massive trade pact will still require years of tough negotiations before it becomes a reality.

The TPP, a deal which will cover 40 per cent of the world economy, has already taken five years of negotiations to reach Thursday's signing stage.

The signing is "an important step" but the agreement "is still just a piece of paper, or rather over 16,000 pieces of paper until it actually comes into force," said New Zealand Prime Minister John Key at the ceremony in Auckland.

The TPP will now undergo a two-year ratification period in which at least six countries - that account for 85 per cent of the combined gross domestic production of the 12 TPP nations - must approve the final text for the deal to be implemented.

The 12 nations include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

Given their size, both the United States and Japan would need to ratify the deal, which will set common standards on issues ranging from workers' rights to intellectual property protection in 12 Pacific nations.

Opposition from many US Democrats and some Republicans could mean a vote on the TPP is unlikely before President Barack Obama, a supporter of the TPP, leaves office early in 2017.

US trade representative Michael Froman has said the current administration is doing everything in its power to move the deal and on Thursday told reporters he was confident the deal would get the necessary support in Congress.

In Japan, the resignation of Economics Minister Akira Amari - Japan's main TPP negotiator - may make it more difficult to sell the deal in Japan.

There is wide spread grassroots opposition to the TPP in many countries. Opponents have criticised the secrecy surrounding TPP talks, raised concerns about reduced access to things like affordable medicines, and a clause which allows foreign investors the right to sue if they feel their profits have been impacted by a law or policy in the host country.

In New Zealand on Thursday more than 1,000 protesters caused traffic disruptions in and around Auckland and police said a large number of police have been deployed.

Chile's Foreign Minister Heraldo Munoz predicted "robust democratic discussion" in his South American nation.

Australian Trade Minister Andrew Robb said the agreement would be tabled next week in parliament. Opposition to the deal in Australia has been building, but Mr Robb was confident it would be approved, despite the government not controlling the Senate.

Canada's new government signed the deal on Thursday, but Trade Minister Chrystia Freeland has said "signing does not equal ratifying."

She emphasised that the government committed itself to a wide-ranging consultation on the TPP during its election campaign and that process was currently underway.

Secretary of the economy for Mexico, Illdefonso Guajardo, said the TPP would be voted on before the end of 2016, while Malaysia said the deal had already been approved, although some legislative changes were still needed.

REUTERS