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GoPro jumps after JPMorgan says second quarter 'looks promising'
Shares of GoPro (GPRO) jumped in midday trading after an analyst at JPMorgan gave a positive take on the stock, noting that the company's second quarter "looks promising."
WHAT'S NEW: JPMorgan analyst Paul Coster maintained an Overweight rating and $17 price target on GoPro, saying that the picture for the company's quarter "looks promising." The analyst said that GoPro chief financial officer Brian McGee advised at a recent broker conference that channel inventory may decline less than previously expected, owing to strong sell-through and retailer re-orders. Coster said his firm believes that this channel inventory view applies to both domestic and international markets and could reflect the benefits of more marketing than this time last year, as well as a less cluttered product lineup. The analyst noted that the company is seeing solid sell-through demand despite a major refresh in the second half of the year. Coster added that McGee mentioned the firm has shown the Karma Drone and Hero 5 to retail partners and went over pricing points and specs.
WHAT'S NOTABLE: On GoPro's first quarter earnings conference call on May 5, the company's management said that it expected modest sequential revenue growth in Q2. On the other hand, GoPro said at the time that it anticipated inventories to come down "substantially" in Q2 and that channel sell-through was expected to be "significantly higher" in the quarter.
PRICE ACTION: At midday, GoPro gained 5.5% to $10.38 per share.
Action-camera maker could report fourth straight quarter of sales declines
Action-camera maker GoPro Inc. is due to report second-quarter results after the close of trading Wednesday. Here’s what you need to know:
EARNINGS FORECAST: GoPro is expected to report a loss adjusted to exclude certain items of 58 cents a share, according to analysts surveyed by Thomson Reuters, compared with a profit of 26 cents a share a year ago.
REVENUE FORECAST:Revenue is expected to come in at $194 million, according to Thomson Reuters. It was $419.9 million a year earlier.
WHAT TO WATCH:
- SALES DECLINE:
GoPro could report the fourth straight quarter in which sales have declined, a blemish that highlights the company’s missteps in its attempt to broaden its customer base. The company hasn’t launched any major new products since it bungled the rollout of its Session camera in the third quarter last year.
- NEW CAMERA PLANS:
The company could give an update about plans for its new flagship camera, which it is expected to release in the fourth quarter. Its appeal should extend beyond its typical sports-addict user base to jump-start growth.
- DRONE DEVELOPMENT:
GoPro in May delayed the launch of its first drone until the holidays instead of June. While chief executive Nick Woodman said the first drone has “revolutionary features,” he didn’t say what those features would be. Competition is fierce in the drone industry; GoPro is under pressure to justify the extra time it has taken.
Shares rise as company sees profitable fourth quarter following new camera, drone
GoPro Inc. swung to a loss in the second quarter, but results still beat expectations, suggesting that aggressive price cuts on its flagship camera are paying off.
GoPro, which makes action cameras popular among adrenaline junkies, also said it expects to return to profitability in the fourth quarter, following the expected launch of its new camera, Hero5, and drone, Karma. For 2016, the company now sees revenue between $1.35 billion and $1.5 billion; analysts surveyed by Thomson Reuters saw revenue of $1.34 billion.
For the quarter ended June 30, GoPro posted a loss of $91.8 million, or 66 cents a share, compared with a year-ago profit of $35 million, or 24 cents a share. Excluding stock-based compensation and other items, the company reported a loss of 52 cents a share, down from year-ago earnings of 24 cents a share.
Revenue declined steeply to $220.8 million from $419.9 million a year ago.
Analysts had projected a per-share loss of 58 cents, excluding certain costs, and revenue of $194 million, according to a survey of analysts by Thomson Reuters.
The loss at GoPro wasn't unexpected: it hasn’t released a new camera in a year, when it bungled the release of its Session camera last July. GoPro was forced to slash the price of the Session by half after initial sales flopped.
GoPro faces pressure to demonstrate there is a more mainstream market for its cameras beyond its adrenaline-addicted core. But as it tries to go more mainstream, it faces competition from do-it-all smartphones from tech giants such as Apple Inc. and Samsung Electronics Corp.
GoPro has said it plans to release a new camera in the second half of the year, which analysts believe could revive sales. The company also plans to launch a drone around the holidays, which it has delayed from the first half of the year.
Lol, so one of the main reasons I was considering upgrading to the Hero 5 Black and selling my Hero 4 Silver was for the Linear FOV.
today I decided to power up my Hero 4 Silver after having not used it for a month. Noticed there's a v5.00 update for it which brings compatibility with the Karma system and Linear FOV.
GAAP loss of $0.74. non-GAAP loss of $0.60 vs expectations for loss of $0.35 (down 85% from a year ago)
Revenue of $240.569 million vs expectations of $313 million (down 39.9% from a year ago)
This is going to go down hard when trading resumes.
Q4 2016 guidance missed too.
See revenue between $600 million and $650 million vs estimates for $675.8 million
Expects to earn between $0.10 and $0.20 per share vs estimates for $0.46 per share earnings.
Action-camera maker says some Karma drones lost power during flight; no injuries reported
Nov. 8, 2016
GoPro Inc.’s first drone is off to a troubled start.
The action-camera maker on Tuesday said it is recalling its new Karma drone after a few units lost power during flight. GoPro said no injuries or property damage have been reported.
GoPro said it will issue refunds for the 2,500 drones it has sold since its launch two weeks ago, and that it isn’t offering replacements. The company didn’t say what caused the power loss.
GoPro said it is working “in close coordination” with the U.S. Consumer Product Safety Commission and the Federal Aviation Administration on its recall.
The CPSC said that it doesn’t regulate consumer drone recalls, according to a spokesman for the agency. The CPSC instructed GoPro to proceed with its recall, according to a GoPro spokesman.
The FAA wasn’t immediately available to comment. Drone owners are required to register their devices with the FAA.
In after-hours trading, GoPro’s stock was trading down more than 9%.
GoPro’s Karma, which sold for $799, represented GoPro’s first major attempt to diversify its products beyond its core action camera line. Chief Executive Nick Woodman placed his bets on the Karma and two new cameras to revive sales.
Last week, GoPro said production issues delayed shipments of its flagship camera, which also launched in the fourth quarter. At the same time, GoPro said revenue tumbled 40% in the third quarter.
In most cases, companies are required by law to announce recalls in partnership with the CPSC.
GoPro reports financial results for its all-important holiday quarter after Thursday's market close.
Shares have fallen almost 4% over the past 12 months amid concerns that demand for the action-camera maker's core products is waning.
GoPro's attempts to diversify its product offerings got off to an unenviable start when the company had to recall its Karma drone in November after some units lost power in mid-flight.
Analysts surveyed by FactSet nonetheless expect GoPro to report a year-over-year increase in profit and revenue for the 2016 fourth quarter tomorrow.
The analysts are modeling adjusted earnings of 22 cents per share on revenue of $576 million for the period. GoPro reported an adjusted loss of 8 cents per share on revenue of $437 million for the 2015 fourth quarter.
GoPro stock soars on report of ‘better-than-feared’ holiday sales
Jan 24, 2017
GoPro Inc. might want to thank Best Buy Co. Inc. for stronger-than-expected holiday sales.
Shares of GoPro soared as much as 11% Tuesday after Pacific Crest raised its quarterly estimates, citing data that may indicate sales were stronger than expected during the holidays after retailers swiftly shifted their promotions in response to GoPro’s Karma drone delay.
Pointing to “better than feared” sell-through, a measure of sales against how much product was shipped to the stores, Pacific Crest analyst Brad Erickson raised his fiscal fourth-quarter unit estimates on GoPro by more than 10%, to 2.1 million units from 1.9 million. He also raised his estimate on average selling prices, reflecting a larger volume of sales of the higher-priced Hero5 and the discontinuation of older camera models.
While GoPro recalled the $799 Karma drone in November and admitted manufacturing issues affected production of the Hero5, once again raising questions about its ability to launch new products and prompting analysts to lower their holiday-season estimates, Erickson said savvy maneuvering from brick-and-mortar retail stores such as Best Buy may help GoPro save face when it reports quarterly earnings on Feb. 2.
Of course, one strong quarter does not mean GoPro is in the clear. The company has faced a consistent deceleration in sales as demand has slowed and competition in the action camera market has increased. This holiday season is being compared against an even worse holiday period last year, when GoPro was relying on the Hero4 Session, an ice cube-sized camera launched in July 2015, which didn’t get as much traction as its more traditional rectangular cameras.
Erickson said “one quarter does not make a trend,” and pointed to the saturated market now rife with competition, which he says continues to be an issue for GoPro, the top-selling action-camera brand. He’s forecasting a 30% sales decline for GoPro in 2016.
The average rating on the stock is the equivalent to hold, while the average price target of $14.08 implies nearly 40% upside from recent trading prices, according to a FactSet analyst survey.
And the Karma drone went back on sale yesterday . . .
GoPro Inc. returned its Karma drone to market Wednesday, three months after the company issued a recall and pulled it from store shelves for battery issues.
The $799 Karma was recalled in early November just two weeks after it was released amid complaints from customers that it would suddenly lose power during flight. It was meant to be one of GoPro's bestselling holiday items. However, its delay, along with separate manufacturing issues that affected production of the Hero5, once against raised questions about GoPro's ability to launch new products.
In a statement, the company said it identified the Karma power issue as related to the latch mechanism that secured the drone's battery. It redesigned the battery latch with the updated Karma drone to solve the problem.
EPS of $0.29 vs $0.22 estimate -- beat
Revenue of $540.6 million vs $576 million estimate -- big miss
Q1 2017 guidance: revenue between $190 million and $210 million vs analyst expectations for revenue of $267.6 million
Shares of GoPro Inc. plunged 11% after hours Thursday after the company missed fourth-quarter revenue expectations and issued a weak outlook.
It reported a net loss of $115.7 million, or a loss of 82 cents per share, compared to a loss of $34.4 million, or a loss of 25 cents per share, in the year-earlier period.
It reported adjusted earnings per share of 29 cents, above the FactSet consensus of 22 cents. Revenue was $540.6 million, up from $436.6 million in the year-earlier period, but below the FactSet consensus of $575.5 million.
For the first quarter of 2017, GoPro sees revenue of $200 million, plus or minus $10 million. The FactSet consensus was for revenue of $267.6 million.
GoPro shares slide premarket as Goldman Sachs downgrades to sell
Mar 6, 2017 8:43 a.m. ET
Goldman Sachs on Monday downgraded shares of GoPro Inc. to sell from neutral, citing the many challenges facing the company as the core action camera market becomes saturated, including product launch issues in the holiday season and a disappointing entry to the drone market.
Goldman lowered its stock price target to $6 from $9.50. "We expect GoPro to continue to struggle fundamentally," analysts wrote in a note. "In its core action camera market, the company exited a disappointing holiday season with excess inventory, as noted by key supplier Ambarella. It also faces a new competitor, YI Technology, whose products are competitive with GoPro's but at a $100 (25-33%) lower price point." The company's recent restructuring may hamper its ability to differentiate through content, said the note. GoPro shares were down 3.3% premarket, and are down 63% in the last 12 months.
GoPro Falling: Goldman Sachs Says Sell On Cash Flow Worries
March 6, 2017
GoPro (GPRO) is falling Monday, following a bearish note from Goldman Sachs.
Analyst Simona Jankowski and her team cut their rating on GoPro to to Sell from Neutral, and lowered their price target to $6, which represents some 30% downside. Jankowski writes that GoPro faces “significant” challenges given the saturation of its core action cameras market, as well as product rollout issues that dogged it during the holiday season and its disappointing entry into the drone market.
These factors, along with a big ramp up in operating expenses in the past two years and restructuring charges, makes Jankowski forecast negative free cash flow until the fourth quarter, which could reduce its cash balance and may mean it needs to tap its credit facility.
She warns that the Street’s estimates still look too high, and thinks the shares are overvalued at 0.9 times enterprise value to sales, compared to 0.4 times for Fitbit.
We lower our estimates below consensus as we expect GoPro to continue to struggle fundamentally.
In its core action camera market, the company exited a disappointing holiday season with excess inventory, as noted by key supplier Ambarella (AMBA). It also faces a new competitor, YI Technology, whose products are competitive with GoPro’s but at a $100 (25-33%) lower price point. Meanwhile, GoPro’s recent restructuring, which eliminated its entertainment group, may reduce its ability to differentiate through content. In drones, GoPro’s new entry with the Karma lags competitor DJI in several key features and performance metrics, which makes it unlikely that it will gain significant share.
We reduce our 2017/18/19 non-GAAP EPS estimates to ($0.70)/($0.31)/$0.13 from ($0.62)/($0.30)/$0.40 on lower revenue forecasts.
Contemplating getting the 5 because RAW image capture, 4K capture and better frame housing (the one for my Hero 4 is about to break due to poor design)
The company, which also reduced its workforce in November, projects first-quarter revenue at the high end of guidance
March 15, 2017 5:17 p.m. ET
GoPro Inc. will cut another 270 jobs amid its broader restructuring aimed at making the company profitable.
The cut—which follows a similar cut of 200 jobs in November—is part of the company’s efforts to lower its expenses. GoPro stock popped 8% after hours to $7.94.
GoPro estimates it will book related charges of up to $10 million in the first quarter of 2017. It also said revenue for the period would be in the upper end of its previously announced $190 million to $210 million range.
“We’re determined that GoPro’s financial performance match the strength of our products and brand,” said Nicholas Woodman, the company’s founder and chief executive.
In November, the company announced several moves as it sought profitability, including eliminating 15% of its then roughly 1,700 jobs, closing open positions and shuttering its entertainment division. It also said its president, Tony Bates, would leave the company.
GoPro has faced challenges in branching out beyond its base of adventure-seeking customers, particularly as do-it-all smartphones from Apple Inc. and Samsung Electronics Co. damp demand for stand-alone cameras.
Hit an all time (intra day) low of $7.14 today too.
Q1 2017 analyst estimates
- loss of $0.44 per share vs loss of $0.63 a year ago.
- revenue of $208 million vs $183.5 million a year ago.
- margins: ??? vs 33% a year ago.
Camera sales, indications of drone demand in focus when action-camera maker reports first-quarter results
Action-camera maker GoPro Inc. is scheduled to report first-quarter results after the close of trading Thursday. Here’s what you need to know:
EARNINGS FORECAST:
GoPro is expected to report a loss adjusted to exclude certain items of 44 cents a share, according to analysts surveyed by FactSet, compared with a loss of 63 cents a share a year ago.
REVENUE FORECAST:
Revenue is expected to come in at $208 million, according to FactSet, compared with $183.5 million a year earlier.
WHAT TO WATCH:
—DRONE DEMAND: The $799 Karma drone returned to store shelves in February after a recall last fall. While the company is unlikely to break out drone sales figures, any comments around sales volume will be of interest to determine how GoPro’s quadcopter is faring in the already crowded field.
—CAMERA SALES: GoPro recently said sales are expected to land at the high-end of its $190-$210 million guidance for the first quarter. The company attributed it in part to demand for the Hero 5, indicating that the latest iteration of its flagship camera has achieved staying power after the holiday rush.
—PATH TO PROFITABILITY: GoPro has shifted its focus to getting lean to become profitable. It slashed 200 jobs in November and axed another 270 last month to lower its expenses. While it seeks to turn a profit by year-end, some analysts remain skeptical given the execution challenges that can occur after layoffs and pressure to churn out a new camera with enough dazzling features to appeal to old customers and attract new ones.
05-12-2016, 02:55 PM
$0.81 (8.23%)
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Please hold for tomorrow so I can get out of my $11 Puts. 
$0.57 (-4.93%) 4:19PM EDT
up 6%
