UPDATE 1-GoPro misses profit estimates, shares fall 12%

GoPro Inc fell short of Wall Street expectations for second-quarter revenue and profit on Thursday, as it struggled to attract customers for its action cameras, sending shares down 12% in extended trading.

The company's trademark action cameras, which were once a must-have for surfers, sky divers and Instagram travel bloggers, have been facing stiff competition amid rising popularity of pocket-friendly smartphones with improving cameras. Revenue rose 3% to $292 million, but missed estimates of $302.3 million, according to IBES data from Refinitiv.

The San Mateo, California-based company's net loss narrowed to $11 million, or 8 cents per share, in the three months ended June 30, from $37.3 million, or 27 cents per share, a year earlier. GoPro said it was able to cut operating expenses by $5 million in the quarter, which helped gross margins improve to 35% from 29% a year earlier.

The company said it is raising its outlook for the second half of 2019, but didn't divulge details. Excluding items, the company earned 3 cents per share, below estimates of 4 cents per share.