How Has GoPro Stock Historically Reacted To Earnings?
GoPro reports earnings today, though shares will likely be reacting on Thursday morning. Listen to traders dissect the news live on Benzinga's Premarket Prep.
- Wall Street is expecting EPS of $0.29 from GoPro Inc (NASDAQ: GPRO) when it reports Wednesday afternoon.
- History suggests shareholders could be in for a big move.
- GoPro’s shares have declined by 55.2 percent over the past year.
GoPro shareholders are gearing up for Q3 earnings due out on Wednesday afternoon after the market closes. Here’s a rundown of what investors can expect from earnings and from GoPro’s stock on Thursday.
According to Estimize, consensus Wall Street earnings expectations for GoPro are EPS of $0.29 on revenue of $438.0 million. These projections represent a 141 percent year-over-year earnings jump and a 56.4 percent jump in revenue.
If history is any indication, it’s likely that GoPro shareholders could be in for a wild ride on Thursday. GoPro has had only five quarterly earnings reports in its brief public history, and the stock has experienced one-day post-earnings moves of at least 12.6 percent following four out of the five reports.
In fact, the average magnitude of GoPro’s one-day trading move following earnings has been 10.8 percent.
Unfortunately for traders looking for a quick profit, the direction of the moves has been hard to predict. Despite the huge volatility, GoPro has made two up moves and three down moves for an overall one-day earnings return of only -0.5 percent.
For traders looking to play only the post-earnings volatility by making spread bets, GoPro’s Q2 earnings demonstrated that even post-earnings volatility itself is unpredictable. After four consecutive double-digit post-earnings moves, GoPro traded down only -0.5 percent following Q2 earnings, causing pain for both call and put holders.
For now, traders are watching and waiting to see if Q3 earnings will usher in a return of GoPro’s post-earnings volatility.
Disclosure: the author holds no position in the stocks mentioned.
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