What to Watch for in GoPro, Inc.’s (NASDAQ/GPRO) Earnings Report
There is a company that has beaten earnings estimates every single quarter since its IPO—GoPro, Inc. (NASDAQ/GPRO). The company is due to report its quarterly earnings after the closing bell today.
GoPro is known for making head-mounted cameras. The company was founded in 2002 by CEO Nick Woodman.
GoPro went public in June of 2014. Trading at $60.47 on Tuesday morning, its stock price has climbed more than 111% since its initial public offering (IPO). However, it still has a long way to go to climb back to the peak $98.47 reached last October.
GoPro Analysts’ Estimate
For the reporting quarter, analysts are expecting revenue to be $395.2 million, a 61.6% increase year-over-year. Earnings-per-share (EPS) is expected to be $0.26, a huge increase compared to $0.08 in the previous year period.
GoPro’s core business is making cameras—and it’s been pretty good at it. To give you some perspective, in the first quarter of 2015, the company shipped 1.3 million cameras, marking the third consecutive quarter with one million plus shipments. The company’s current lineup includes cameras ranging from the $129.00 GoPro Hero to the $499.00 Hero4 Black. The most recent addition is the waterproof Hero4 Session costing $399.00.
Other than hardware, GoPro has also started to build up its own media content. In the previous reporting quarter, content submissions to the company’s Photo and Video of the Day program surged 50%. During the same period, there were more than 1.7 million installs of GoPro Studio, with average daily exports close to 40,000. GoPro also has a significant presence on YouTube.
In an effort to build its own media empire, the company appointed Zander Lurie as Senior Vice President of Media last November. As a media veteran, Lurie has served as the Executive Vice President at Guggenheim Digital Media and as SVP, Strategic Development at CBS Corporation.
Priced for Future Growth
Note that at today’s share price for GoPro, the company has a price-earnings-ratio of 90.0. This shows that investors believe there will be strong growth in the future. And indeed, the company has some ambitious plans.
In May, Nick Woodman said that GoPro would move into virtual reality. The company would launch a six-camera spherical array to capture images and video needed to create virtual reality. The CEO also said that GoPro was planning to enter the drone business as well. The company was working on a quadcopter scheduled to launch in the first half of 2016.
That is, other than this quarter, earnings in future quarters would be even more exciting to watch.