GoPro and Starbucks released their latest earnings reports after closing bell tonight. GoPro reported adjusted losses of 44 cents per share on $218.6 million, compared to the analyst estimates of 44 cents per share in losses and $208 million in revenue. In the same quarter a year ago, the action camera maker reported adjusted losses of 63 cents per share and $184 million in sales.
Starbucks reported earnings of 45 cents per share on $5.29 billion in revenue, compared to the Wall Street estimates of 45 cents per share and $5.42 billion in revenue. In the same quarter a year ago, the coffee shop chain reported earnings of 39 cents per share on $4.99 billion in sales.
GoPro beats sales guide
GoPro’s GAAP losses amounted to 78 cents per share, which was flat with last year. The GAAP gross margin fell to 31.4% from 32.5%, while the non-GAAP gross margin declined to 32.2% from 33%. Adjusted EBITDA losses narrowed to $45.7 million from the year-ago adjusted EBITDA loss of $86.8 million.
Prescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More
GoPro told investors last month that sales in the first quarter would be toward the high end of its guidance range, which was $190 million to $210 million. The company also said that it expected a pick-up in sell-in in the second quarter due to seasonality, improved supply of its Karma drone, and timing of shipments. GoPro has been expecting sales growth in the double-digit percentages for the full year and a return to profitability this year.
The company expects second quarter revenue to be about $270 million, plus or minus $10 million. The consensus currently stands at $243 million. GoPro projects a GAAP and non-GAAP gross margin of 33.5%, plus or minus 1%, and adjusted EBITDA losses of $15 million, plus or minus $5 million.
Shares of GoPro initially surged in after-hours trades but then reversed course and declined by as much as 1.57% to $8.80.
Starbucks shares fall
Comparable store sales grew 3% year over year, while analysts were generally expecting an increase of 3% to 4% year over year. UBS analysts predicted before tonight’s report that anything below 3% would send Starbucks shares lower, while anything above 4% would boost them much higher as it would indicate less uncertainty in the company’s future. The company was up against easier comparisons, according to some analysts. U.S. comparable store sales grew 3%, while comparable sales in China rose 7%.
Shares of Starbucks fell by as much as 4.44% to $58.58 in after-hours trading.