Oppenheimer Remains Sidelined Following a Rough 3Q for GoPro (GPRO)
Oppenheimer maintained a Perform rating on GoPro (NASDAQ: GPRO) following the company's 3Q earnings results and guidance. GPRO guided 4Q sales at $500-550M vs. consensus of $675M, and EPS at $0.35-0.45. GPRO also announced a $300M share repurchase program and more aggressive marketing campaigns into the holiday season.
Analyst Andrew Uerkwitz commented, "The large 4Q guidance miss (despite a broader product offering and 60% more retail presence) in the all important holiday time confirmed two things for us: 1) our long-term negative bias has been correct—this is a great product for a very niche market; and 2) we were wrong thinking the cycle would turn negative in 2016. It turned negative in 4Q15. Now the company becomes a "show me" story in new verticals (quadcopters, VR, and media platforms) where competitors are even stronger and where GPRO lacks first-mover advantage. We maintain our Perform rating and a negative bias on its core camera business. Our current model does not include any contribution from quadcopters in 2016."
For an analyst ratings summary and ratings history on GoPro click here. For more ratings news on GoPro click here.
Shares of GoPro closed at $30.21 yesterday.