GoPro Q4 Earnings and Revenue Beat Estimates

GoPro (GPRO) delivered better-than-expected fourth-quarter and full-year results despite a challenging business environment. Revenue and earnings topped consensus estimates as the strategic shift made in 2020, focused on financial and operational improvements, continues to bear fruit. GPRO shares fell 6.84 % to close at $8.44 on February 3.

GoPro is a U.S. company that designs, manufactures, and sells cameras and camera accessories. It also provides mountable and wearable cameras.

GoPro Earnings

Revenue in the fourth quarter was up 9% year-over-year to $391 million, beating consensus estimates of $382.63 million. GoPro.com revenue, including subscription revenue, was up 10% to $128 million, accounting for 33% of total revenue. Full-year revenue was up 30% year-over-year to $1.16 billion.

Cameras priced at $300 or above accounted for 100% of Q4 2021 camera revenue, up from 91% the prior year. For the full year, the $300 or above-priced cameras accounted for 97% of total camera revenue.

Q4 non-GAAP net income increased to $66 million from $61 million delivered in the same quarter the prior year. Consequently, GoPro delivered Q4 earnings per share of $0.41, better than consensus estimates of $0.35 a share. Full-year earnings per share landed at $0.90, a significant improvement from the $0.08 per share delivered in the prior year’s quarter.

GoPro’s board of directors has approved the repurchase of $100 million worth of the company’s Class A stock.

Stock Rating

Wedbush analyst Michael Pachter has reiterated a Buy rating on the stock with a $13.50 price target, implying 59.95% upside potential to current levels. The analyst believes the company is well-positioned to expand profitability this year, backed by a product mix-shift toward high-end hardware.

Consensus among analysts is a Moderate Buy based on 2 Buys and 1 Hold. The average GoPro price target of $14.25 implies 68.84% upside potential to current levels.

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