GoPro (GPRO) looked like it was relentlessly sinking, but it threw a last-minute Hail Mary pass and announced new products for the holidays. Can they save the company?
Currently the consensus is looking for fiscal 2016 revenue of $1.39 billion, down 14%, and earnings are expected to be a loss of $1.07 per share.
With several new products for the holidays, revenue will likely rebound into the first half of 2017, but it remains to be seen if there is sufficient demand to keep the stock moving higher.
On Sept. 19, GoPro introduced the Hero5 Black ($399), the Hero5 Session ($299) and a drone called the Karma ($799). The products are competitively priced when compared to Garmin's (GRMN) $499 camera and Sony's (SNE) $399 offering. GoPro even offers a low-end model simply called the Hero Session for $199. The company also announced an online video storage service for $4.99 a month. The cameras should be available the first week of October; the Karma launches Oct. 23. DJI's drone, the Mavic, starts shipping almost a full month earlier on Sept. 27.
With the addition of new products for the holidays, analysts are forecasting revenue to grow 23% in 2017 as retailers restock their shelves. But it remains to be seen how many of the newer cameras will actually sell. GoPro Silver is still the best-selling action camera.
A lot has to go right for the stock to lift. The company has to re-establish sales growth, expand margins, fight off considerable competition and find more ways to expand the available market.