GoPro Inc. (NASDAQ: GPRO) is set to release its third-quarter earnings report after the markets close on Wednesday. Thomson Reuters consensus estimates call for $0.29 in earnings per share (EPS) on $433.6 million in revenue. In the same period of the previous year, the company posted EPS of $0.12 and $279.97 million in revenue.
This has been another roller-coaster stock, and it could be offering a sweet entry point. GoPro had a super-hot IPO last year but has been all over the place since. The company develops hardware and software solutions to help consumers in capturing, managing, sharing and enjoying engaging recorded content. It offers its HERO line of capture devices, such as cameras; premium accessories, including battery BacPac, smart remote, and LCD touch BacPac accessories; and mounts, comprising equipment-based mounts.
Cowen sees the company as not only the market leader in its specific arena, but the company expanding the product line it pioneered with a range of new devices that should appeal to sports enthusiasts and families. The firm also thinks that the new software should drive ease of use, while content licensing drones and virtual reality will be a boost for long-term growth.
Earlier in October, GoPro hit all-time lows after the release of a boutique firm’s research report. Oppenheimer questioned whether being in more stores translates to more sales. GoPro has a strong retail presence, growing its total retail outlets to over 40,000 from 25,000 in a year. The second half of 2015 sell-through data points from those new stores are critical to make calls for 2016.
Ahead of earnings a few analysts weighed in on GoPro:
- JPMorgan reiterated a Buy rating with a $75 price target.
- Citigroup reiterated a Positive rating but lowered its price target to $75 from $90.
- Wedbush has an Outperform rating but lowered its price target to $50 from $76.
- Piper Jaffray downgraded GoPro to Neutral from Overweight and lowered its price target to $25 from $54.
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So far in 2015, GoPro has vastly underperformed the market, with the stock down 55.4% year to date. Over the past 52 weeks, shares are down 56.5%.
Shares of GoPro were last seen trading up 2.3% at $28.87 on Wednesday, with a consensus analyst price target of $56.00 and a 52-week trading range of $26.68 to $87.50.
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