What to Watch For in GoPro Earnings

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GoPro Inc. (NASDAQ: GPRO) is set to report its second-quarter financial results after the markets close on Thursday. Thomson Reuters consensus estimates call for a net loss of $0.22 per share and $270.23 million in revenue. The same period of last year reportedly had a net loss of $0.09 per share and $296.53 million in revenue.

GoPro’s first quarter was driven by strong sell-through of HERO5 Black and HERO6 Black, along with the launch of its new $199 entry-level HERO. Initial demand for HERO is promising, and management expected it to improve as large retail partners like Target and Walmart began selling the product in the second quarter.

Also, CEO Nick Woodman believes that the firm’s first-quarter performance makes it clear that there is significant demand for GoPro, “at the right price.” The company began to step up marketing programs in March, which, coupled with overall expense controls, solid channel management and second half new product launches, gives management confidence for a successful 2018 for GoPro.

Excluding Thursday’s move, GoPro has underperformed the broad markets with the stock down about 24% in the past 52 weeks. In just 2018 alone, the stock is down 19%.

A few analysts weighed in on GoPro ahead of the report:

  • Wedbush has a Neutral rating and a $6.50 price target.
  • Stifel has a Hold rating with a $6 price target.
  • William Blair has a Market Perform rating.
  • Morgan Stanley has a Sell rating with a $4 target.
  • Cascend Securities has a Hold rating.
  • Merrill Lynch has an Underperform rating and a $4.80 target.

Shares of GoPro were last seen down 2.6% at $5.96, with a consensus analyst price target of $5.13 and a 52-week trading range of $4.42 to $11.89.