We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GoPro, Inc. (GPRO - Free Report) recently announced its decision to trim nearly 15% of its workforce, as approved by its board of directors. The initiative is part of a broader restructuring plan, which is aimed at reducing operating expenses by approximately $50 million to $320 million (+/- $5 million) in 2025 from the midpoint of the projected total operating expenses of $365-$370 million in 2024.
The restructuring charges are expected between $5 million and $7 million. Of these charges, it expects to incur cash expenses of $1 million in the third quarter and roughly $4-$6 million in the fourth quarter of 2024.
Management noted that these estimates are subject to several variables, including local law requirements in various jurisdictions where GoPro operates. As such, actual amounts may vary materially from the initial estimates. The company expects to incur the majority of the restructuring-related charges in the fourth quarter of 2024
At the end of the second quarter on Jun 30, 2024, GoPro had 925 full-time employees. The layoff of 139 jobs (15% of the workforce) is projected to commence in the third quarter of 2024 and will be completed by the end of 2024.
Following the announcement of the restructuring plan, GPRO’s stock rose 1.5%, highlighting the positive reception of the cost-saving initiative from its investors.
In August 2024, the company reported revenues of $186 million, down 23% year over year. Its operating expenses rose 5% year over year to $103 million. However, further delays in product launches are expected to lower revenues by $100 million in 2024. The metric is now anticipated in the range of $850-$870 million compared with the earlier projection of $900 million. Muted consumer spending in the absence of promotional activity, macro concerns and stiff competition remain woes.
The soft second-quarter results further promote the pressing need to embrace cost-cutting measures to streamline operations and curb expenditure.
San Mateo, CA-based 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. It reports revenues under two channel heads — GoPro.com and Retail channel. Net sales from GoPro.com plunged 35.1% year over year to $49.1 million. Retail channel registered revenues of $137.1 million, down 17.1% year over.
GPRO currently carries a Zacks Rank #3 (Hold). GPRO’s shares have lost 65% against the industry’s growth of 6.6% in the past year.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
CommScope Holding is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. COMM has a long-term growth expectation of 18.15%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GoPro (GPRO) Undertakes 15% Workforce Reduction Strategy
GoPro, Inc. (GPRO - Free Report) recently announced its decision to trim nearly 15% of its workforce, as approved by its board of directors. The initiative is part of a broader restructuring plan, which is aimed at reducing operating expenses by approximately $50 million to $320 million (+/- $5 million) in 2025 from the midpoint of the projected total operating expenses of $365-$370 million in 2024.
The restructuring charges are expected between $5 million and $7 million. Of these charges, it expects to incur cash expenses of $1 million in the third quarter and roughly $4-$6 million in the fourth quarter of 2024.
Management noted that these estimates are subject to several variables, including local law requirements in various jurisdictions where GoPro operates. As such, actual amounts may vary materially from the initial estimates. The company expects to incur the majority of the restructuring-related charges in the fourth quarter of 2024
At the end of the second quarter on Jun 30, 2024, GoPro had 925 full-time employees. The layoff of 139 jobs (15% of the workforce) is projected to commence in the third quarter of 2024 and will be completed by the end of 2024.
Following the announcement of the restructuring plan, GPRO’s stock rose 1.5%, highlighting the positive reception of the cost-saving initiative from its investors.
In August 2024, the company reported revenues of $186 million, down 23% year over year. Its operating expenses rose 5% year over year to $103 million. However, further delays in product launches are expected to lower revenues by $100 million in 2024. The metric is now anticipated in the range of $850-$870 million compared with the earlier projection of $900 million. Muted consumer spending in the absence of promotional activity, macro concerns and stiff competition remain woes.
The soft second-quarter results further promote the pressing need to embrace cost-cutting measures to streamline operations and curb expenditure.
San Mateo, CA-based 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. It reports revenues under two channel heads — GoPro.com and Retail channel. Net sales from GoPro.com plunged 35.1% year over year to $49.1 million. Retail channel registered revenues of $137.1 million, down 17.1% year over.
GPRO currently carries a Zacks Rank #3 (Hold). GPRO’s shares have lost 65% against the industry’s growth of 6.6% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks, Inc. (ANET - Free Report) , Harmonic Inc. (HLIT - Free Report) and CommScope Holding Company, Inc. (COMM - Free Report) . ANET and HLIT presently sport a Zacks Rank #1 (Strong Buy) each, whereas COMM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
CommScope Holding is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. COMM has a long-term growth expectation of 18.15%.