Gopro Inc Cl A Up 14.37% To $3.07 After Earnings Beat

GoPro Inc (GPRO) beat out earnings estimates for Q3 2023 this afternoon.

Gopro Inc Cl A's earnings came in at an EPS of $0.04 per share, 100.00% higher than estimates for an EPS of $0.02 per share. The firm's earnings are down 79% since reporting $0.19 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Gopro Inc Cl A revenue came in at a consensus of $281.5 million. Third-Quarter revenues surpassed estimates for $294.3 million by $12.8 million (5%). The company achieved negative 4% growth year-over-year compared to the firm's revenue of $305.1 million from the year-ago quarter. The lower earnings growth relative to revenue signals Gopro Inc Cl A has not been able to improve its profit margin.

The stock is up 14.37% to $3.07 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 31. Meanwhile, the average Wall Street analyst rated the stock a Buy.

GoPro Inc is a United States-based company that is principally engaged in designing and providing cameras, mounts, drones and appliances. The company outsources a part of manufacturing to third parties in China. The company sells products across the world through its direct sales channel, which generates over half of total revenue, and indirectly through its distribution channel. The company has presence, including in the Americas, Europe, Middle East, Africa, and Asia-Pacific, with the Americas contributing over half of total revenue.