Stock Story -
Action camera company GoPro (NASDAQ:GPRO) will be announcing earnings results tomorrow after market close. Here's what you need to know.
GoPro beat analysts' revenue expectations by 6.1% last quarter, reporting revenues of $155.5 million, down 11% year on year. It was a decent quarter for the company, with revenue and adjusted EBITDA exceeding expectations.
Is GoPro a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting GoPro's revenue to decline 29.5% year on year to $170 million, a further deceleration from the 3.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 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 Q2 results, giving us a hint as to what we can expect. Hasbro (NASDAQ:HAS)'s revenues decreased 17.7% year on year, beating analysts' expectations by 5.5%, and Mattel (NASDAQ:MAT) reported flat revenue, falling short of estimates by 1.8%. Hasbro traded up 7.4% following the results while Mattel was also up 9.7%.
Read the full analysis of Hasbro's and Mattel's results on StockStory.
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 down 2.1% during the same time and is heading into earnings with an average analyst price target of $1.9 (compared to the current share price of $1.39).
