We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GoPro (GPRO) to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
GoPro, Inc. (GPRO - Free Report) is scheduled to report second-quarter 2018 financial results after the closing bell on Aug 2. In the last reported quarter, the company delivered a positive earnings surprise of 15%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
During the second quarter, GoPro achieved the milestone of more than 30 million HERO cameras sale since the debut of its first HD model in November 2009. Its cameras have been the best-selling device in its category for the past 17 quarters in a row in North America.
For the to-be-reported quarter, management expects revenues to be in the range of $260 million to $280 million, driven by the demand for HERO5 and HERO6 Black cameras as well as entry-level HERO cameras. While gross margin percentage is anticipated to be in the upper-20s, operating expenses are expected to be slightly above $100 million, up sequentially, primarily due to higher advertising costs. Non-GAAP tax expenses are likely to be $0.5 million. The company expects cash balances to increase in the second quarter resulting from lower losses and improvements in working capital.
However, for the second quarter, the Zacks Consensus Estimate for total revenues stands at $272 million, down from $297 million reported in the year-earlier quarter, due to a price-competitive camera and camcorder market.
Earnings Whispers
Our proven model does not conclusively show that GoPro is likely to beat earnings this quarter as it does not possess one of the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is exactly not the case here as you will see below:
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, as both are pegged at a loss of 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GoPro currently has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes earnings prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
NMI Holdings, Inc. (NMIH - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #1.
Hilton Grand Vacations Inc. (HGV - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
GoPro (GPRO) to Report Q2 Earnings: What's in the Cards?
GoPro, Inc. (GPRO - Free Report) is scheduled to report second-quarter 2018 financial results after the closing bell on Aug 2. In the last reported quarter, the company delivered a positive earnings surprise of 15%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
During the second quarter, GoPro achieved the milestone of more than 30 million HERO cameras sale since the debut of its first HD model in November 2009. Its cameras have been the best-selling device in its category for the past 17 quarters in a row in North America.
For the to-be-reported quarter, management expects revenues to be in the range of $260 million to $280 million, driven by the demand for HERO5 and HERO6 Black cameras as well as entry-level HERO cameras. While gross margin percentage is anticipated to be in the upper-20s, operating expenses are expected to be slightly above $100 million, up sequentially, primarily due to higher advertising costs. Non-GAAP tax expenses are likely to be $0.5 million. The company expects cash balances to increase in the second quarter resulting from lower losses and improvements in working capital.
However, for the second quarter, the Zacks Consensus Estimate for total revenues stands at $272 million, down from $297 million reported in the year-earlier quarter, due to a price-competitive camera and camcorder market.
Earnings Whispers
Our proven model does not conclusively show that GoPro is likely to beat earnings this quarter as it does not possess one of the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is exactly not the case here as you will see below:
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, as both are pegged at a loss of 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GoPro, Inc. Price and EPS Surprise
GoPro, Inc. Price and EPS Surprise | GoPro, Inc. Quote
Zacks Rank: GoPro currently has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes earnings prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Domtar Corporation has an Earnings ESP of +1.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NMI Holdings, Inc. (NMIH - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #1.
Hilton Grand Vacations Inc. (HGV - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>