Action camera company GoPro (NASDAQ: GPRO) will be reporting results tomorrow afternoon. Here’s what to look for.
GoPro beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $200.9 million, down 32% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a miss of analysts’ cameras sold estimates. It reported 581,000 cameras sold, down 35.1% year on year.
Is GoPro a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GoPro’s revenue to decline 19.5% year on year to $125.2 million, a further deceleration from the 11% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GoPro has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.3% on average.
Looking at GoPro’s peers in the consumer electronics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Peloton’s revenues decreased 13.1% year on year, meeting analysts’ expectations, and Apple reported revenues up 5.1%, topping estimates by 0.7%. Peloton traded down 11.9% following the results while Apple was also down 3.6%.
Read our full analysis of Peloton’s results here and Apple’s results here.
There has been positive sentiment among investors in the consumer electronics segment, with share prices up 9% on average over the last month. GoPro is up 19.8% during the same time and is heading into earnings with an average analyst price target of $0.65 (compared to the current share price of $0.61).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
