How Far Is GoPro from Its 2017 Target?



GPRO’s 2017 revenue expectation

While releasing its 3Q17 financial results, GoPro (GPRO) went on to issue guidance for 4Q17 and fiscal 2017. For 4Q17, GoPro is expecting revenues of $470 million, give or take $10 million. For its bottom line, it guided adjusted EPS (earnings per share) in the band of $0.37–$0.47. Its adjusted EPS came in at $0.29 in 4Q16.

For fiscal 2017, GoPro is expecting revenues of $1.32 billion, give or take $10 million. In 2016, GoPro reported full-year revenues of ~$1.19 billion. So far in 2017, GoPro has generated revenues of $845 million, indicating that the company is $470 million shy of its full-year revenue target for 2017.

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GoPro is $0.30 shy of full-year 2017 EPS target

In 2016, GoPro suffered a full-year adjusted EPS loss of $1.44, but it’s expecting to see a profit this year. The company guided its 2017 adjusted EPS to be between a loss of $0.02 and a gain of $0.08.

So far in 2017, GoPro has seen an adjusted EPS loss of $0.38, indicating that it is $0.30 shy of the high-end of its adjusted EPS guidance for 2017.

Hero6 and Fusion 360 expected to support growth and profitability

GoPro is expected to rely on its new products, the Hero6 and virtual-reality-enabled Fusion 360 camera, to drive its top-line growth and bottom-line improvements this year.

More than 50% of GoPro’s revenues are generated outside the US (SPY), and the company recently reported strong momentum in terms of product demand in China (MCHI) and Japan (EWJ).

GoPro’s Asia-Pacific sales rose 153% YoY in 3Q17, compared with a 20% rise in the Americas and a 26% rise in Europe (EFA), the Middle East, and Africa combined.


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