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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at consumer electronics stocks, starting with Peloton (NASDAQ:PTON).
Consumer electronics companies aim to address the evolving leisure and entertainment needs of consumers, who are increasingly familiar with technology in everyday life. Whether it’s speakers for the home or specialized cameras to document everything from a surfing session to a wedding reception, these businesses are trying to provide innovative, high-quality products that are both useful and cool to own. Adding to the degree of difficulty for these companies is technological change, where the latest smartphone could disintermediate a whole category of consumer electronics. Companies that successfully serve customers and innovate can enjoy high customer loyalty and pricing power, while those that struggle with these may go the way of the VHS tape.
The 4 consumer electronics stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q4: Peloton (NASDAQ:PTON)
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Peloton reported revenues of $674 million, down 9.4% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
Interestingly, the stock is up 27.6% since reporting and currently trades at $9.70.
Is now the time to buy Peloton? Access our full analysis of the earnings results here, it’s free.
GoPro (NASDAQ:GPRO)
Known for sponsoring extreme athletes, GoPro (NASDAQ:GPRO) is a camera company known for its POV videos and editing software.
GoPro reported revenues of $200.9 million, down 32% year on year, outperforming analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EPS estimates but a miss of analysts’ cameras sold estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 27.5% since reporting. It currently trades at $0.80.