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) Misses Earnings and Revenue Estimates in Q2
Read MoreHide Full Article
GoPro, Inc. (GPRO - Free Report) reported lower-than-expected second-quarter 2019 results, wherein both the top line and the bottom line missed the respective Zacks Consensus Estimate. However, the action video camera maker’s performance was largely driven by strong demand for HERO7 cameras and diligent execution of operational plans. Lower operating expenses and inventory management also acted as tailwinds.
Net Loss
On a GAAP basis, net loss for the June quarter was $11.3 million or loss of 8 cents per share compared with net loss of $37.3 million or loss of 27 cents per share in the year-ago quarter. The year-over-year improvement was primarily due to top-line growth and lower operating expenses.
However, non-GAAP net income came in at $4.2 million or 3 cents per share against net loss of $20.8 million or loss of 15 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by a penny.
GoPro generated quarterly revenues of $292.4 million, up 3.4% year over year with growth in all geographic regions. The top line, however, lagged the consensus estimate of $301 million.
The company shipped 1.1 million camera units during the reported quarter, up 1% year over year. This was mainly due to solid demand for the flagship HERO7 Black camera, which accounted for more than 85% of total camera revenues.
Cash Flow & Liquidity
GoPro utilized $66 million of net cash in operating activities during the first six months of 2019 compared with cash utilization of $100.6 million in the year-ago period. As of Jun 30, 2019, the company had $91.3 million in cash and equivalents with $143.8 million of long-term debt.
Going Forward
GoPro expects to translate the healthy momentum and controlled cost in its business into growth and profitability through 2019 and beyond. The company is optimistic about its prospects, mainly on account of strong demand for its products in end markets. It plans to enhance its Plus subscription service through enhanced benefits and user awareness and aims to work more closely with its retail partners, both in North America and abroad.
GoPro is also making investments in merchandising and retail advertising to drive bigger brand presence while continuing to innovate. It intends to expand footprint in emerging markets like India and is focused on scaling its CRM efforts to augment customer base.
Hasbro surpassed earnings estimates twice in the trailing four quarters, the average positive surprise being 95.2%.
Mattel surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 49.7%.
Take-Two surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 25.3%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
GoPro (GPRO) Misses Earnings and Revenue Estimates in Q2
GoPro, Inc. (GPRO - Free Report) reported lower-than-expected second-quarter 2019 results, wherein both the top line and the bottom line missed the respective Zacks Consensus Estimate. However, the action video camera maker’s performance was largely driven by strong demand for HERO7 cameras and diligent execution of operational plans. Lower operating expenses and inventory management also acted as tailwinds.
Net Loss
On a GAAP basis, net loss for the June quarter was $11.3 million or loss of 8 cents per share compared with net loss of $37.3 million or loss of 27 cents per share in the year-ago quarter. The year-over-year improvement was primarily due to top-line growth and lower operating expenses.
However, non-GAAP net income came in at $4.2 million or 3 cents per share against net loss of $20.8 million or loss of 15 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by a penny.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Revenues
GoPro generated quarterly revenues of $292.4 million, up 3.4% year over year with growth in all geographic regions. The top line, however, lagged the consensus estimate of $301 million.
The company shipped 1.1 million camera units during the reported quarter, up 1% year over year. This was mainly due to solid demand for the flagship HERO7 Black camera, which accounted for more than 85% of total camera revenues.
Cash Flow & Liquidity
GoPro utilized $66 million of net cash in operating activities during the first six months of 2019 compared with cash utilization of $100.6 million in the year-ago period. As of Jun 30, 2019, the company had $91.3 million in cash and equivalents with $143.8 million of long-term debt.
Going Forward
GoPro expects to translate the healthy momentum and controlled cost in its business into growth and profitability through 2019 and beyond. The company is optimistic about its prospects, mainly on account of strong demand for its products in end markets. It plans to enhance its Plus subscription service through enhanced benefits and user awareness and aims to work more closely with its retail partners, both in North America and abroad.
GoPro is also making investments in merchandising and retail advertising to drive bigger brand presence while continuing to innovate. It intends to expand footprint in emerging markets like India and is focused on scaling its CRM efforts to augment customer base.
Zacks Rank & Stocks to Consider
GoPro currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Hasbro, Inc. (HAS - Free Report) , Mattel, Inc. (MAT - Free Report) and Take-Two Interactive Software, Inc. (TTWO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hasbro surpassed earnings estimates twice in the trailing four quarters, the average positive surprise being 95.2%.
Mattel surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 49.7%.
Take-Two surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 25.3%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>