GoPro analyst is ‘skeptical’ that the company can fix its problems


Shares at GoPro Inc. are down nearly 5% after analysts at Pacific Crest said they “remain skeptical” the company’s new software and recent acquisitions can help improve its future forecasts.

Pacific Crest’s Brad Erickson reiterated a sector weight rating on the stock but lowered fiscal 2016 and 2017 revenue and earnings-per-share estimates, citing continued weakness in GoPro’s supply chain.

Erickson also lowered forward unit and average selling price assumptions.

Estimates would have been worse if not for the upcoming drone launch which may drive “some continued optimism.”

The drone, which will launch in the second quarter, is expected to deliver five million to six million global unit sales within its first year, Pacific Crest’s estimates state.

Last year, GoPro sold 5.2 million capture devices, with a majority of those units being delivered over the holiday shopping season.

The company has attempted to grow its business through multiple acquisitions. The company acquired Kolor, a 360-degree videos provider, along with video editing startups Stupeflix and Vemory.

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The company is expected to report a huge drop in sales when it reports first-quarter earnings next month, according to MarketWatch.

Analysts surveyed by FactSet are forecasting sales of $169 million or a decline of 53% from $363 million in the same period last year.

The company continues to face increased competition in its main sector, which is hurting sales.

GoPro shares

Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated.