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Market Overview

Earnings Preview: GoPro

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On Thursday, November 05, GoPro (NASDAQ: GPRO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

GoPro EPS is expected to be around $0.06, according to sell-side analysts. Sales will likely be near $234.50 million. GoPro reported a per-share loss of $0.42 when it published results during the same quarter last year. Sales in that period totaled $131.17 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 114.29%. Sales would be have grown 78.78% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.17 -0.35 0.79 -0.48
EPS Actual -0.20 -0.34 0.70 -0.42
Revenue Estimate 114.27 M 119.00 M 569.85 M 126.35 M
Revenue Actual 134.25 M 119.40 M 528.35 M 131.17 M

Stock Performance

Shares of GoPro were trading at $6 as of November 03. Over the last 52-week period, shares are up 34.53%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. GoPro is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings