How Will GoPro (GPRO) Stock React to Today's Earnings Release? - TheStreet

NEW YORK (TheStreet) -- GoPro (GPRO) - Get Report is scheduled to announce its financial results for the 2015 third quarter today after the market close.

The company is expected to post a year-over-year increase in earnings and revenue.

Analysts have estimated earnings of 29 cents per share on $433.6 million in revenue for the latest quarter.

Last year, GoPro reported earnings of 12 cents per share on $279.97 million in revenue for the third quarter of 2014.

The San Mateo-based company makes mountable and wearable cameras and accessories, as well as video editing software and mobile applications.

So far this year, GoPro has introduced two new cameras, the HERO+ and the HERO4 Session, bringing its total product lineup to six.

GoPro stock is gaining 2.59% to $28.96 in late morning trading on Wednesday.

Separately, TheStreet Ratings team rates GOPRO INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate GOPRO INC (GPRO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GPRO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 64.15%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • GOPRO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.72 versus $0.77).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 276.6% when compared to the same quarter one year prior, rising from -$19.84 million to $35.03 million.
  • GPRO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GPRO has a quick ratio of 2.06, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 47.81% is the gross profit margin for GOPRO INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.34% is above that of the industry average.
  • You can view the full analysis from the report here: GPRO