uploads/2016/09/gpro-pm-7.png

GoPro Falls Again with Launch of Competitor’s Camera

By

Updated

Price movement

GoPro (GPRO) has a market cap of $2.3 billion. It fell 0.77% to close at $16.79 per share on September 27, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 17.7%, 14.1%, and -6.8%, respectively, on the same day.

GPRO is trading 15.5% above its 20-day moving average, 20.6% above its 50-day moving average, and 31.5% above its 200-day moving average.

Article continues below advertisement

Related ETF and peers

The iShares Morningstar Small Value ETF (JKL) invests 0.20% of its holdings in GoPro. The ETF tracks a market-cap-weighted index of US small-cap value stocks. The index stocks from the 90th to the 97th percentile of the market-cap spectrum, using fundamental factors. The YTD price movement of JKL was 13.1% on September 27, 2016.

The market caps of GoPro’s competitors are as follows:

  • Canon (CAJ): $39.0 billion
  • Sony (SNE): $42.4 billion
  • Best Buy (BBY): $12.1 billion

Latest news on GoPro

GoPro fell 0.77% on September 27, 2016, after China’s SZ DJI Technology launched a drone camera. Snap also introduced Spectacles in the camera market on September 24, 2016. These companies launched their products after GoPro introduced Karma and a new Hero5 camera on September 19, 2016. This new development should increase competition in the camera market.

Bloomberg reported, “Chinese drone maker SZ DJI Technology Co. stepped up to defend its market-leading position, unveiling a new, compact drone targeted at consumers and professionals just over a week after GoPro Inc. introduced its own long-anticipated quadcopter.”

Article continues below advertisement

It also noted, “DJI’s newest offering is the Mavic Pro, a foldable model that can be operated with a smartphone or controller and fly for up to 27 minutes. At $999 it boasts shake-free videos and the capability to live-stream full HD video to Facebook Live, Periscope and YouTube, according to a statement from the company Tuesday.”

GoPro’s performance in 2Q16

GoPro reported 2Q16 revenues of $220.8 million, a fall of 47.4% compared to $419.9 million in 2Q15. The company’s gross profit margin fell 9.0% in 2Q16 compared to the same period last year.

Its net income and EPS (earnings per share) fell to -$91.8 million and -$0.66, respectively, in 2Q16, compared to $35.0 million and $0.24, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS of -$76.8 million and -$0.52, respectively, in 2Q16 compared to $75.3 million and $0.35 in 2Q15.

GoPro’s cash and cash equivalents and inventory fell 41.5% and 52.2%, respectively, in 2Q16 compared to 4Q15. Its current ratio fell to 2.1x, and its debt-to-equity ratio rose to 0.45x in 2Q16 compared to 2.8x and 0.43x, respectively, in 4Q15.

The company expects revenues of $1.4 billion–$1.5 billion in 2016.

Next, we’ll look at Tempur Sealy International (TPX).

Advertisement

More From Market Realist