GoPro (NASDAQ:GPRO) Releases Quarterly Earnings Results, Misses Estimates By $0.32 EPS

GoPro (NASDAQ:GPRO) announced its earnings results on Monday, May 11th. The company reported ($0.35) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.32), FiscalAI reports. The firm had revenue of $99.07 million for the quarter, compared to analyst estimates of $137.54 million. GoPro had a negative return on equity of 161.44% and a negative net margin of 20.70%.

Here are the key takeaways from GoPro’s conference call:

• The board has authorized a strategic process and engagement of a financial advisor after unsolicited inbound interest, and CEO Nick Woodman says he fully supports evaluating a sale or other alternatives to unlock shareholder value.
• Q1 revenue fell to $99M (from $134M), gross margin collapsed to 4.5% due to discrete actions (would be ~31% ex-items), net loss widened to $58M, adjusted EBITDA was -$50M, and management has withdrawn full-year guidance.
• GoPro launched the new MISSION 1 professional 8K/4K compact cinema line (priced $599–$699), won multiple industry awards, and expects these products to help gain share in prosumer and professional markets.
• The company is formally exploring defense and aerospace opportunities with Oliver Wyman after NASA used GoPro cameras on Artemis II, signaling potential new, scalable B2G/B2B revenue avenues.
• Direct-to-consumer momentum continued as gopro.com revenue rose to 39% of sales (from 30%), subscription attach improved to 51%, inventory fell 25% YoY, and cash used in operations improved $21M year-over-year.

GoPro Trading Down 4.3%

GoPro stock traded down $0.04 during trading on Thursday, reaching $1.00. The company had a trading volume of 5,693,845 shares, compared to its average volume of 6,120,544. GoPro has a 12-month low of $0.59 and a 12-month high of $3.05. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.38 and a current ratio of 0.58. The stock’s 50 day moving average price is $1.08 and its two-hundred day moving average price is $1.20. The firm has a market capitalization of $170.98 million, a price-to-earnings ratio of -1.27 and a beta of 2.36.

Insiders Place Their Bets

In other GoPro news, COO Brian Mcgee sold 130,631 shares of GoPro stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $0.97, for a total value of $126,712.07. Following the transaction, the chief operating officer owned 947,123 shares in the company, valued at $918,709.31. This trade represents a 12.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 18.38% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Jump Financial LLC acquired a new stake in GoPro during the second quarter worth about $25,000. Captrust Financial Advisors grew its holdings in shares of GoPro by 89.6% during the 2nd quarter. Captrust Financial Advisors now owns 33,041 shares of the company’s stock worth $25,000 after purchasing an additional 15,618 shares during the period. Banco BTG Pactual S.A. purchased a new stake in shares of GoPro during the 2nd quarter worth about $27,000. Caitong International Asset Management Co. Ltd increased its position in GoPro by 1,295,800.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 12,959 shares of the company’s stock worth $27,000 after purchasing an additional 12,958 shares in the last quarter. Finally, Jefferies Financial Group Inc. acquired a new stake in GoPro during the 3rd quarter worth approximately $27,000. 70.09% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on GPRO. Weiss Ratings lowered GoPro from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, May 15th. Wall Street Zen lowered GoPro from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

GoPro Company Profile

GoPro, Inc (NASDAQ: GPRO) is an American technology company specializing in the design and manufacture of compact, high-definition cameras and related accessories. Headquartered in San Mateo, California, GoPro’s product lineup is centered on its flagship HERO series of action cameras, which combine rugged construction, waterproof housings and advanced imaging capabilities. In addition to the HERO line, the company offers the MAX camera for 360-degree video capture, along with an array of mounts, grips and protective cases to support use in extreme sports, travel and professional video production.

Since its founding in 2002 by Nicholas Woodman, who continues to serve as chief executive officer, GoPro has expanded beyond hardware into software and cloud-based services.