Action camera company GoPro (NASDAQ:GPRO) will be reporting results tomorrow after market hours. Here’s what you need to know.
GoPro beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $258.9 million, down 12% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 881,000 cameras sold, down 4.6% 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 32.6% year on year to $199.2 million, a further deceleration from the 8% 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at GoPro’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 4%, meeting analysts’ expectations, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Apple’s stock price was unchanged after the results, while VF Corp was up 1.4%.
Read our full analysis of Apple’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. GoPro is down 12.4% during the same time and is heading into earnings with an average analyst price target of $1.35 (compared to the current share price of $0.99).
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