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Earnings preview: GoPro to post forgettable Q3 results

As the troubled action camera maker, GoPro (GPRO), announces third-quarter results, analysts expect it to be another forgettable episode. The company has not been able to make any considerable strides with regards to improving top-line growth or operational efficiency.

Analysts, on an average, expect the company to swing back to a loss during the third quarter. According to street estimates, the company is likely to post a loss of 6 cents per share in Q3, compared to a profit of 15 cents per share in the year-over period.

Gopro Q3 earnings results hero 5
Photo by Dose Media on Unsplash

For the full year, analysts now project a loss of 21 cents per share, but they expect the company to get profitable by the next financial year, at the end of which, EPS is projected to be around 14 cents a share.

Weighed down by lack of product innovation in a highly competitive market, GoPro’s sales will decline 17% year-over-year to $271.87 million in Q3, according to analysts’ estimates.

GPRO stock has been flattish the since beginning of the year. In the past 52 weeks, its shares have fallen as much as 41%.

The company currently has a consensus analyst rating of HOLD, with six out of the 14 analysts covering the stock recommending this. The stock has an average price target of $7.50, which is at a 24% upside from Monday’s intraday trading price of $6.04.

Oppenheimer bullish on GoPro after HERO7 launches

A few major investment firms still have been taking advantage of the cheap pricing of the stock and raising their stake in the company. While Schwab Charles Investment Management Inc. raised stake in GoPro by 14.1%, Blackrock lifted its stake by 9.1%. A few other firms including  BNP Paribas Arbitrage, HSBC Holdings and California Public Employees Retirement System have also bought more shares of GoPro.

 

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