Twitter Inc, GoPro Inc Q1 Results: What Analysts Expect

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Two major technology companies, Twitter and GoPro, will release their fiscal first-quarter results on Tuesday, April 28th after the markets close. Twitter stock has rallied 42% year-to-date while GoPro has declined about 30% in the same period. GoPro shares are up 1.93% in intraday trading Tuesday, suggesting investors are optimistic about its results.

User growth key for Twitter

Analysts polled by Thomson Reuters expect the microblogging company to post $456.52 million in Q1 revenue with 4 cents a share in earnings. However, investors are worried more about Twitter’s user growth than about the top- and bottom line. The San Francisco-based company added only 4 million users in Q4, 2014. If user growth remains in the single digits, it will raise questions about the company’s long-term potential.

Wedbush Securities analysts estimate the number of Monthly Active Users (MAUs) to jump to 302.4 million in Q1, 2015 from 288 million in Q4, 2014. Twitter has been effectively monetizing its users. Over the past few months, CEO Dick Costolo has introduced a plethora of new features to boost user engagement and attract new users. Twitter has revamped its homepage and introduced Periscope app that lets people post live video feeds.

GoPro set to beat consensus estimates

Analysts on average expect GoPro to report $340.99 million in revenue and 18 cents a share in earnings. The consensus revenue estimate is well above the company management’s guidance of $330-$340 million. For the second-quarter, analysts are looking for GoPro to generate $334 million in sales and 16 cents in EPS. On Monday, Dougherty & Co analyst Charles Anderson reiterated his Buy rating on the stock.

Wedbush Securities analyst Michael Pachter said GoPro will easily beat the consensus estimates because of pent-up demand carried forward from the previous quarter. The company witnessed strong demand for its new Hero4 action cameras during the holiday quarter. Pachter has an Outperform rating on the stock with $70 price objective. Last week, Morgan Stanley said it expected GoPro to ship 1.3 million units of its cameras during the quarter.

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