GoPro earnings Q3 2017

Daniel Acker | Bloomberg | Getty Images

Nick Woodman, founder and chief executive officer of GoPro

GoPro shares plunged after reporting disappointing fourth quarter guidance, despite posting earnings that topped Wall Street expectations.

The fourth quarter includes the holiday shopping season.

The company said it expects fourth quarter earnings between 37 cents and 47 cents per share on $470 million in revenue. Analysts had projected earnings per share of 57 cents on revenue of $521.2 million, according to Thomson Reuters consensus estimates.

The stock fell 7 percent in after hours trade.

Here’s how the company did compared with what Wall Street expected:

• EPS: 15 cents vs. 2 cents expected according to Thomson Reuters
• Revenue: $330 million vs. $313.8 million expected according to Thomson Reuters

In the year ago quarter, GoPro reported an adjusted loss per share of 60 cents on revenue of $240.6 million. GoPro on Wednesday reported year over year revenue growth of 37 percent.

While the stock has gained more than 20 percent so far in 2017, it has fallen more than 15 percent in the past 12 months.

GoPro shares have seen a lot of volatility as the company cuts costs as part of its plan to return to profitability. The company has attempted shift focus away from its core wearable camera products towards drones and newer markets like virtual reality.

But investors are still looking for signs that the progress GoPro has made is stable. In October, GoPro shares initially fell after Google announced camera improvements for its smartphones as well as an artificial intelligence clip-on camera.

But shares pared losses after analysts said the market was overreacting and overestimating the potential threat from Alphabet’s product.

This is breaking news. Please check back for updates.