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GoPro's (GPRO) Q2 Earnings Top Estimates, Revenues Inch Up Y/Y

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·5 min read
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GoPro, Inc GPRO reported non-GAAP earnings came of 8 cents per share in second-quarter 2022, beating the Zacks Consensus Estimate by 33.3%. The company reported earnings of 12 cents in the year-ago quarter.

GoPro generated revenues of $250.7 million, up 0.4% from the year-ago quarter’s levels affected by adverse forex movement. It beat the consensus mark by 4.5%.

For the third quarter, revenues are estimated to be $300 million (+/- $5 million). The Zacks Consensus Estimate stands at $334.6 million.  

Non-GAAP adjusted earnings are expected to be 17 cents per share (+/-2 cents). The consensus mark is pegged at 30 cents per share.

GoPro, Inc. Price, Consensus and EPS Surprise

 

GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. Price, Consensus and EPS Surprise

GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote

 

Quarter in details

GoPro shipped 640 million camera units during the reported quarter, down 11.6% year over year, witnessing a sell-through of 700,00 units. Its channel inventory reduced slightly in the second quarter.

GoPro recorded 1.91 million subscribers, marking 65% year-over-year growth, at the close of the reported quarter. Quik subscribers soared 270% to 276,000 from the prior year quarter.

Region-wise, revenues from the Americas came in at $126.4 million (50.4% of total revenues), down 14% from the year-ago quarter’s levels. Revenues from Europe, the Middle East and Africa were $71.7 million (28.6%), up 17% year over year. The Asia Pacific generated revenues of $52.6 million (21%), up 26% year over year.

Based on channels, revenues from GoPro.com were $95.3 million (38% of total revenues), up 8.5% year over year. The uptick was driven by higher direct-to-consumer and subscription revenues via GoPro.com. In the GoPro.com channel, hardware revenues totaled $75.2 million compared with $76 million in the prior-year quarter. Subscription revenues came in at $20.1 million, up 70.3% year over

Encouraged by a healthy momentum, the company aims to bolster margins with continued investments to enhance shopper experience on the back of robust website engagement and conversion.

Revenues from the Retail channel came in at $155.4 million (62%), down 4% from the year-ago quarter’s levels.

The company had $126 million in inventory compared with $106.8 million in the year-ago quarter.

Other Details

Gross profit was $96 million, down 3.3% year over year. Total operating expenses were $91.4 million, up 1.7%. Operating income came in at $4.7 million down 51% year over year.

Non-GAAP gross margin contracted 160 basis points to 38.5%. Adjusted EBITDA was $16.9 million, down 32.6% from the year-ago period.

Cameras with suggested retail prices at or above $400 contributed 93% to revenues in the reported quarter, up from 77% in the year-ago quarter. The upside reflects the growing demand for GoPro’s premium products.

Cash Flow & Liquidity

For the quarter under review, GoPro generated $12.9 million of net cash from operating activities against $23.2 million reported in the year-ago period.

As of Jun 30, 2022, the company had $203.3 million in cash and cash equivalents with $140.5 million long-term debt.

The company repurchased $12 million worth of shares under the current $100 million buy-back authorization

Guidance

For the third quarter, gross margins are expected to be 39% +/- 50 basis points. Street ASP is projected to be nearly $400.

Zacks Rank & Other Stocks to Consider

GoPro currently has a Zacks Rank #4 (Sell).

Some other top-ranked stocks from the broader technology sector worth consideration are Cadence Design Systems CDNS, Intuit INTU and Badger Meter BMI. Cadence and Badger Meter sports a Zacks Rank #1 (Strong Buy), while Intuit carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days. Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 5.7% of their value in the past year.

The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.11 per share, up 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.

CDNS earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have increased 22.9% in the past year.

The Zacks Consensus Estimate for Intuit’s fiscal 2022 earnings is pegged at $11.72 per share, rising 0.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 15.6%.

Intuit’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 16.8%. Shares of INTU have lost 12.7% in the past year.


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