Bidness ETC - GoPro Plans To Reach New Heights In 2QFY15

The action camera makers are expecting to report higher revenue growth as compared to the sales it made in the previous quarter.

GoPro camera business has been working towards making its sales boost right upwards since quite a long time and analysts believe that the action camera makers have been doing a magnificent job that has been showing in the increase in sales that the company recently witnessed in the first quarter of the current financial year. It has been proved by the camera producing company that all the strategies that have been adopted have turned out to be extremely profitable for it.

This statement can be verified by the number of sales the company was seen doing in the first financial quarter of 2015 where it beat the estimations and predictions of the equity analysts by a mile. The estimations made by the analysts of Wall Street were also proved to be wrong and analysts believe that that the speed the camera makers have seemed to be working upon, it will soon become of the biggest camera producers in the country.

The recent earnings for the first quarter that were announced by GoPro turned out quite positively with the earnings per share coming around at $0.52 beating predictions of $0.24 of the WSJ. On the other hand, the action camera manufacturers sold around 1.3 million action cameras in totality which helped the revenue of the firm increase as much as to $363 million. If the first quarter of 2014 is taken into consideration, it will be seen that an increase of a massive 54% has been recorded in the rise of the revenue per quarter.

Furthermore, the gross margin of GoPro (GPRO) sales also witnessed an increment from the first quarter of the previous year to around 45.1% which was recorded to be coming around at 40.9% in the past.

GoPro has given a guidance report for the second financial quarter of the current fiscal year where the revenue is expected to come around better $300-$400 million, which will see an upgrade by 59% as compared to the year before.

As for the EPS for 2Q, the expected amount per share has been expected to come in between $0.24-$0.26. The estimates and guidance that has been given by the company are much more than what analysts have been expecting from the firm which indicates that arise is bound to take place in the sales of the firm and it also shows that it believes that by the end of the second quarter, GoPro stock will be boosting its revenue growth and earnings with a huge difference as compared to the growth it witnessed in the previous quarter.

Bidness ETC - GoPro reported First Quarter Earnings Report for FY15

GoPro reported its Q1FY15 earnings on Tuesday and posted 24 cents in earnings per share while its revenue boosted due to increasing in overseas sales.

GoPro announced its first quarter fiscal year 2015 earnings report on Tuesday April 28. The company improved its revenue by over 50% due to massive international sales that account for almost 50% of the total sales by the company.

The Camera manufacturer reported $363.1 million in revenue up by 54% YoY. GoPro surpassed analyst’s estimation of $341 million of total sales, as per FactSet. The company reported earnings of $0.24 per share more than Wall Street forecast of $0.18 per share, as per the analysts polled by Reuters.

This is the fourth time in a row that the company was able to beat Wall Street expectations since its initial public offering in June last year.

Company’s profit increased by 52% and reached $16.8 million equals to $0.13 per share. That is still less from $122 million profit company reported in the last quarter on sales of $634 million. But that was due to the holiday season that sets record revenue and profits for the company.

GoPro said that over 50% of its total revenue came from overseas, with almost 66% of sales from Europe and Asia markets in the quarter.

The international growth is nothing new for the company while the sales in Asia and Europe market accounted for 70% in the previous quarter of FY14. Last year, GoPro worked on establishing its global infrastructure by introducing a facility of product assembly in Brazil and also formed European marketing and sales headquarters in Munich. GoPro also forged associations with Chinese e-commerce retailers like JD.com and Tmall in 2014.

In another announcement different from earnings report, the company said, it has decided to acquire Kolor, a company that focuses in 360-degree video and virtual reality. The financial numbers of the deal were not revealed.

Chief Executive Officer of GoPro, Nick Woodman said, “GoPro’s capture devices and Kolor’s software will combine to deliver exciting and highly accessible solutions for capturing, creating and sharing spherical content,” during earnings release, Mr. Woodman had already advertised GoPro investment “investments in talent, technology, software, and innovative new products” in a statement related to sustaining company’s growth.

During after hour trading session, GoPro’s stock price jumped around 7% after going up by 4% during the regular trading hour.

Bidness ETC - GoPro Inc. Earnings Preview for First Quarter FY15

GoPro Inc is all set to report its 1QFY15 earnings results on April 28. Specialty stores may have helped boost GoPro's sales in the March quarter because they may not have received adequate supply during the holidays.

GoPro Inc is ready to announce its first quarter fiscal year 2015 earnings report on Tuesday April 28 after market close. According to reports, the demand for cameras was more than company’s expectation during the quarter.

On April 22, in a report James Faucette, Yuuji Anderson and Meta Marshal analysts at Morgan Stanley retained their Equal-weight rating along with the stock price target of $57 on the company. Their estimation of 1.3 million units proposes a quarter-over-quarter decline of 50% in sell-through rates as the first quarter is always normally slow. However, according to their checks the sell-through rates might have only declined in the range of 30 to 40% in the 1QFY15.

The analysts also expect the company to perform better in the second quarter due to “the widening breadth of activity” at numerous retailers such as photography, skating and music stores. They stated that specialty retailers were not able to get enough stock in the holiday session and, therefore, are now witnessing high sell through rates.

In addition, the team of Morgan Stanley stated that it does not seem like as if the average selling price of GoPro Inc witnessed much of an issue. They also believe that the company will be able to surpass revenue guidance of $330 million to $340 million by the management of the company.

MS analysts retained their rating on company’s stock mainly because GoPro Inc needs to enhance its software platform. They also said that the company must come forward and take the charge of systematizing video editing and sharing via its own software platform.

Analysts at Stifel team expects the camera maker to post adjusted earnings of $0.17 per share as compared to the $0.18 a share consensus estimate on $343 million of revenue against $341 million of consensus. They also forecast minimum 1.4 million cameras shipment and nearly 10% decline in the normal selling price.

They also indicated that the company has been making heavy investments in new items. GoPro Inc. guided for general, selling & administrative expenditure of around $112.5 to $117.5 million for the quarter.

Consequently, the company will able to get more attention of the investors to its upcoming products, mainly the Hero5 cameras, which is expected to be launch later this year.