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GoPro (GPRO) Plans to Reduce its Global Workforce by 4%
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GoPro, Inc (GPRO - Free Report) plans to cut its workforce to reduce operating costs and boost operational leverage. The company is looking to trim its global workforce by 4%.
GPRO expects restructuring activities to cost $7.5 billion in total. Management expects that a considerable portion of these restructuring charges will be reflected in its GAAP results for the first quarter of 2024.
Out of the $7.5 billion costs, job cuts will result in cash expenditures of $2 million in the first quarter of 2024.
The remainder of the expenses will stem from planned reductions of office space, added management. It expects to incur impairment charges of $3.3 million in the first quarter of 2024 associated with a reduction in office space. Moreover, GPRO forecasts another $2.2 million of office space charges through January 2027.
Headquartered in San Mateo, CA, GoPro is one of the leading manufacturers of the world's most handy camera and enabler of some of today's most immersive and engaging content. The company's latest cameras include cloud connected HERO12 Black and HERO11 Black waterproof cameras, and MAX, a 360-degree waterproof camera.
The company is witnessing a revenue slump. In the last reported quarter, the company generated revenues of $295.4 million, down 8% year over year. The top line also missed the consensus mark by 9.7%. The top-line performance was affected by weakness in the DTC channel and lower sell-through of units. For 2023, revenues came in at $1 billion, down 8% year over year.
GPRO aims to drive revenues through a strategic overhaul, which includes retail presence expansion, more entry-level priced GoPro cameras and reduced prices. The company added more than 3,200 new retail doors since May 2023.
It intends to continue driving door growth with a target of 7,000 additional new doors over the next two years, powered by the launch of new products. GoPro is also planning to upgrade its point-of-purchase merchandisers, augment in-store brand presence and boost account management throughout the retail channel.
Nonetheless, uncertainty prevailing over macroeconomic conditions might keep consumer spending under pressure. Stiff competition and increasing expenses are concerning.
The Zacks Consensus Estimate for MANH’s 2024 earnings per share (EPS) has increased 3.6% in the past 60 days to $3.76. Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 67.7% in the past year.
The Zacks Consensus Estimate for SNPS’ fiscal 2024 EPS increased 0.2% in the past 60 days to $13.46. The long-term earnings growth rate is 17.5%. SNPS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of SNPS have soared 57.9% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. MSFT’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is 16.2%. Shares of MSFT have rallied 53.3% in the past year.
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GoPro (GPRO) Plans to Reduce its Global Workforce by 4%
GoPro, Inc (GPRO - Free Report) plans to cut its workforce to reduce operating costs and boost operational leverage. The company is looking to trim its global workforce by 4%.
GPRO expects restructuring activities to cost $7.5 billion in total. Management expects that a considerable portion of these restructuring charges will be reflected in its GAAP results for the first quarter of 2024.
Out of the $7.5 billion costs, job cuts will result in cash expenditures of $2 million in the first quarter of 2024.
The remainder of the expenses will stem from planned reductions of office space, added management. It expects to incur impairment charges of $3.3 million in the first quarter of 2024 associated with a reduction in office space. Moreover, GPRO forecasts another $2.2 million of office space charges through January 2027.
GoPro, Inc. Price and Consensus
GoPro, Inc. price-consensus-chart | GoPro, Inc. Quote
Headquartered in San Mateo, CA, GoPro is one of the leading manufacturers of the world's most handy camera and enabler of some of today's most immersive and engaging content. The company's latest cameras include cloud connected HERO12 Black and HERO11 Black waterproof cameras, and MAX, a 360-degree waterproof camera.
The company is witnessing a revenue slump. In the last reported quarter, the company generated revenues of $295.4 million, down 8% year over year. The top line also missed the consensus mark by 9.7%. The top-line performance was affected by weakness in the DTC channel and lower sell-through of units. For 2023, revenues came in at $1 billion, down 8% year over year.
GPRO aims to drive revenues through a strategic overhaul, which includes retail presence expansion, more entry-level priced GoPro cameras and reduced prices. The company added more than 3,200 new retail doors since May 2023.
It intends to continue driving door growth with a target of 7,000 additional new doors over the next two years, powered by the launch of new products. GoPro is also planning to upgrade its point-of-purchase merchandisers, augment in-store brand presence and boost account management throughout the retail channel.
Nonetheless, uncertainty prevailing over macroeconomic conditions might keep consumer spending under pressure. Stiff competition and increasing expenses are concerning.
GoPro currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Manhattan Associates (MANH - Free Report) , Synopsys (SNPS - Free Report) and Microsoft (MSFT - Free Report) . While MANH and SNPS sport Synopsys a Zacks Rank #1 (Strong Buy) each, MSFT carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MANH’s 2024 earnings per share (EPS) has increased 3.6% in the past 60 days to $3.76. Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 67.7% in the past year.
The Zacks Consensus Estimate for SNPS’ fiscal 2024 EPS increased 0.2% in the past 60 days to $13.46. The long-term earnings growth rate is 17.5%. SNPS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of SNPS have soared 57.9% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. MSFT’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is 16.2%. Shares of MSFT have rallied 53.3% in the past year.