GoPro, Inc. (NASDAQ:GPRO) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in GoPro, Inc. (NASDAQ:GPRO) had a good week, as its shares rose 3.0% to close at US$0.61 following the release of its first-quarter results. Revenues of US$134m beat expectations by a respectable 7.8%, although statutory losses per share increased. GoPro lost US$0.30, which was 82% more than what the analysts had included in their models. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from GoPro's three analysts is for revenues of US$732.0m in 2025, which would reflect a perceptible 6.2% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 59% to US$0.36. Before this latest report, the consensus had been expecting revenues of US$718.6m and US$0.20 per share in losses. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for GoPro

The consensus price target held steady at US$0.63, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on GoPro, with the most bullish analyst valuing it at US$0.75 and the most bearish at US$0.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 8.2% to the end of 2025. This tops off a historical decline of 3.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.1% per year. 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 note is the forecast of increased losses next year, suggesting all may not be well at GoPro. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GoPro's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for GoPro going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with GoPro .

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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.