Action camera company GoPro (NASDAQ:GPRO) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
GoPro beat analysts’ revenue expectations by 9.5% last quarter, reporting revenues of $186.2 million, down 22.7% year on year. It was a very strong quarter for the company, with a decent beat of analysts’ operating margin estimates. It reported 576,000 camera units, down 18.2% 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 13.4% year on year to $255 million, a further deceleration from the 3.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.
The majority of analysts covering the company have 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 Q3 results, giving us a hint as to what we can expect. Peloton’s revenues decreased 1.6% year on year, beating analysts’ expectations by 2.5%, and Apple reported revenues up 6.1%, in line with consensus estimates. Peloton traded up 9.1% following the results while Apple was down 1.1%.
Read our full analysis of Peloton’s results here and Apple’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. GoPro is up 8.5% 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 $1.41).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.