GoPro Inc Ready to Smash Fourth Quarter Predictions

Technology

Over the last week GoPro Inc. (NASDAQ:GPRO) has lost 5.26% and fell to 25.6%. On Friday, GoPro Inc. stock was traded at $49.75 and has almost lost 50% of its value in the past four months. The company's stocks shed 5.26% last week, compared to a loss of 2.77% in the S&P 500.

 

GoPro Inc. has scheduled its fourth quarter earnings report to be released on Thursday 5th February. Majority of the firms believe that the company had a joyful holiday season and will be successfully able to surpass the analysts' predictions.

Just before the holiday season, the company launched its new products Hero4 line of cameras, not only to enjoy the benefit of holiday season, but also derived it based upon the initial demand of the new cameras. Analysts at JPMorgan Chase & Co. (NYSE:JPM) claimed that the demand of the electronic gadget was solid all over the United States and it is expectant that it will easily meet the current quarter sales expectations.

According to GoPro Inc guidance, the company will post earnings between 65 cents and 69 cents per share and revenue in between $550 to $580 million. However, JPMorgan analysts supported the top end of the company and predicted earnings of 69 cents on revenue of $580 million.

They are also expecting an increase in shipment of GoPro’s units by almost 43% every year, raising up to 2 million. According to data collected by Morgan Stanley (NYSE:MS) analyst Faucette, the company sold more than 500,000 units in January only.

Analysts are projecting an average selling price to increase up to $253 per unit due to excessive demands of expensive Hero model camera. The company is willing to see increase in both gross margin and operating margin.

JPMorgan team repeated its over-weight rating and target price of $70 per share for the GoPro stocks. Morgan Stanley on the other hand also restated its equal-weight rating and target price of $57, which is more than the current price level.

Investors and analysts are anxiously waiting for company’s fourth quarter results. Overall, analysts believe GoPro to post $0.70 in earnings along with revenue of $580.33 million.Oppenheimer predicts GoPro to beat the earning per share, gross margin and even revenue estimations. The San Mateo-based company has surpassed analysts’ approximations in both quarters report after going public in June 2014.

GoPro shares fell 2.14% to $49.75 on close of market on Friday.

GoPro, Inc is an America Corp. that develops, manufactures and creates HD personal cameras, frequently used in Extreme-action video making and photography.