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The latest analyst coverage could presage a bad day for GoPro, Inc. (NASDAQ:GPRO), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Bidders are definitely seeing a different story, with the stock price of US$1.65 reflecting a 23% rise in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.
Following the downgrade, the consensus from three analysts covering GoPro is for revenues of US$753m in 2025, implying a chunky 16% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$920m of revenue in 2025. The consensus view seems to have become more pessimistic on GoPro, noting the measurable cut to revenue estimates in this update.
See our latest analysis for GoPro
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that GoPro's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 13% to the end of 2025. This tops off a historical decline of 1.4% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.8% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect GoPro to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of GoPro going forwards.
Need some more information? We have estimates for GoPro from its three analysts out until 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.