What happened

Shares of GoPro (NASDAQ:GPRO) fell, after the action-camera specialist announced weaker-than-expected second-quarter results relative to expectations -- even though it also followed by raising its full-year 2019 guidance.

On the former, GoPro's quarterly revenue climbed 3.4% year over year to $292.4 million and would have risen 9% had it not been for the company's decision to exit the drone market last year. That translated to adjusted net income of $4 million, or $0.03 per share, swinging from a loss of $0.15 per share a year ago.

Analysts, on average, were looking for adjusted (non-GAAP) net income of $0.04 per share on revenue of $302 million.

GoPro camera falling into clear water.

IMAGE SOURCE: GOPRO.

So what

GoPro managed to swing to adjusted profitability thanks to a combination of higher camera unit shipments, up 1% year over year to 1.082 billion; higher average selling prices, up 7% to $270, with strong demand for its high-end HERO7 Black camera; and accelerated subscriber growth for its $4.99-per-month GoPro Plus service, up 50% year over year to 252,000. 

What's more, CEO Nick Woodman said the company is increasing its 2019 guidance on "continued sell-through momentum, channel inventory levels, and the strength of new products slated for later this year."

Now what

As such, GoPro now sees 2019 revenue increasing 9% to 12%, up from between 7% and 10% before, with earnings per share of $0.40, a nickel-per-share increase from the middle of its old $0.25-to-$0.45 range.

So why the decline today? Considering both GoPro's past missteps and a lack of specifics on its impending product launches, traders simply aren't yet willing to accept GoPro's promise of a far stronger second half. Until GoPro can show more tangible proof that it will be able to live up to its freshly raised outlook, I suspect the stock will remain under pressure.