What to Expect When GoPro Reports

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GoPro Inc. (NASDAQ: GPRO) is set to release its third-quarter financial results after the markets close on Thursday. Thomson Reuters consensus estimates call for a net loss of $0.06 per share in and $272.27 million in revenue. The same period of last year had earnings of $0.15 per share and $329.81 million in revenue.

This company has fallen from its former glory days and has been written off by many investors, though it saw its shares rise after a recent Oppenheimer upgrade to Outperform from Perform.

What was amazing was that the firm’s new $9 price target implied 36% upside from the prior day’s closing price of $6.62. For what it is worth, analyst upgrades and reiterated ratings in Dow Jones industrials or S&P 500 stocks generally come with an implied 8% to 10% upside at this stage of the bull market. After all, the bull is more than nine years old, and the major U.S. indexes are not too far from all-time highs.

The new lineup of Hero cameras is being viewed as a herald to GoPro’s turnaround plans. The streaming features and the video stabilization efforts are viewed positively. The Oppenheimer upgrade cited GoPro’s previously declining share price not being due to competition but largely due to self-inflicted wounds and moonshots that did not pan out.

And the turnaround is considered real in the Oppenheimer call. The firm even threw out the obvious in saying GoPro has been left to the scrap heap but is now finally worth a second look ahead of its new products and the holiday season.

Excluding Thursday’s move, GoPro has underperformed the broad markets, with its stock down 37% in the past 52 weeks. In just 2018 alone, the stock is down 13%.

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

  • Morgan Stanley has a Sell rating with a $5 price target.
  • Wedbush has a $7 price target.
  • Citigroup has an Outperform rating and a $9 price target.
  • UBS has an Outperform rating.

Shares of GoPro were last seen up over 5% at $6.94 on Thursday, in a 52-week range of $4.42 to $9.64. The consensus analyst price target is $6.58.

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