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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 quarterly 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. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting 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 discernible 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. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$718.6m and losses of US$0.20 per share in 2025. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
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As a result, there was no major change to the consensus price target of US$0.63, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic GoPro analyst has a price target of US$0.75 per share, while the most pessimistic values it at US$0.50. 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 while a broad number of companies are forecast to grow, unfortunately GoPro is expected to see its revenue affected worse than other companies in the industry.