GoPro Inc. Down 10.76% To $5.77 After Earnings Beat

GoPro Inc (GPRO) reported better than expected earnings this afternoon for Q4 2022.

GoPro Inc.'s earnings came in at an EPS of $0.12 per share, 33.00% higher than estimates for an EPS of $0.09 per share. The firm's earnings are down 71% since reporting $0.41 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. revenue came in at a consensus of $322.8 million. Fourth-Quarter revenues missed estimates for $321 million by $1.8 million (1%). The company achieved negative 18% growth year-over-year compared to the firm's revenue of $391.1 million from the year-ago quarter. The lower earnings growth relative to revenue signals GoPro Inc. has not been able to improve its profit margin.

The stock is down 10.76% to $5.77 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.

Trading in the five days leading up to the report earned GoPro Inc. a Bullish Sentiment Rank from InvestorsObserver.

GoPro Inc. has performed a little below average during the past few months. Before the report, GoPro Inc. received a Long-Term Technical Rank by InvestorsObserver of 49, putting it in the bottom half of stocks. The firm set a 52-week low on November 4, 2022 at $4.5 and set a 52-week high on May 4, 2022 at $9.42.

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.