GoPro GPRO announces its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
See also: How to Buy GoPro Stock
Earnings And Revenue
GoPro EPS is expected to be around $0.38, according to sell-side analysts. Sales will likely be near $373.60 million. In the same quarter last year, GoPro announced EPS of $0.7 on revenue of $528.35 million.
Why Analyst Estimates And Earnings Surprises Are Important
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 report earnings in line when it publishes results Thursday, earnings would be down 45.71%. Revenue would be down 29.29% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
|Quarter||Q3 2020||Q2 2020||Q1 2020||Q4 2020|
|Revenue Estimate||234.50 M||114.27 M||119.00 M||569.85 M|
|Revenue Actual||280.51 M||134.25 M||119.40 M||528.35 M|
Shares of GoPro were trading at $10.49 as of February 02. Over the last 52-week period, shares are up 170.39%. 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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