GoPro Inc (GPRO) Q2 Earnings Preview

GoPro Inc (GPRO) Q2 Earnings Preview
<a href="">ciupa</a> / Pixabay

GoPro, the maker of versatile action cameras, is scheduled to report its financial results for the second quarter after the closing of the stock market on Tuesday, June 21.

During the previous quarter, GoPro Inc (NASDAQ:GPRO) delivered $363.1 million in revenue, the second highest quarterly revenue in the history of the company. Its net income was $16.8 million or $0.11 per diluted share.

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GoPro CEO Nicholas Goodman said the company was investing in innovative new products, talent, technology and software to strengthen its ecosystem, and to drive growth.

GoPro (GPRO) expected to maintain leadership in action camera market

Analysts at Goldman Sachs Investment Research expected GoPro Inc (NASDAQ:GPRO) to maintain its leadership in the action camera market. They estimated that the company’s shipped 1.35 million units during the second quarter, a 58% increase year-over. They also forecasted that the company achieved an ASP of $292, up by 8% quarter-over-quarter.

“Our channel checks continue to show GoPro maintaining top share on Amazon and Best Buy, led by the HERO model and then Silver and Black, and video uploads/subscribers on YouTube continue to increase GoPro launched new accessories for its camera’s,” according to Goldman Sachs analyst Simona Jankowski and her team in a note to investors.

GoPro is expected to achieve $396 million in revenues, up by 61% year-over-year or 9% quarter-over-quarter. Their estimate was at the high-end of the company’s guidance in the range of $380 million to $400 million.

The analysts estimated that GoPro will be able to deliver earnings of $0.26 per share. The company’s earnings guidance was around $0.24 to $0.26 per share.

GoPro (GPRO) launched new products

Earlier this month, GoPro Inc (NASDAQ:GPRO) introduced a collection of new accessories and mounts to improve the versatility of its sports cameras. Two new mounts were designed specifically for the HERO4 Session camera including the Ball Joint Buckle and Floaty. The Ball Joint Buckle has a rotating axis that allows users to change the angle of capture quickly without un-mounting the camera. Floaty is an easy-to-spot flotation accessory. The company also released The Strap, The Jam, Casey and WindSlayer accessories that are compatible with all HERO cameras.

Last month, GoPro Inc (NASDAQ:GPRO) launched the HERO+LCD in the United States. The action camera costs $299.99. Jankowski and her fellow analysts estimated a 45.5% gross margin. GoPro’s gross margin guidance was between 44.5% and 45.5% for the second quarter.

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