ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Consumer Electronics Q4 Earnings: Peloton (NASDAQ:PTON) Simply the Best

PTON Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at consumer electronics stocks, starting with Peloton (NASDAQ: PTON).

Consumer electronics companies aim to address the evolving leisure and entertainment needs of consumers, who are increasingly familiar with technology in everyday life. Whether it’s speakers for the home or specialized cameras to document everything from a surfing session to a wedding reception, these businesses are trying to provide innovative, high-quality products that are both useful and cool to own. Adding to the degree of difficulty for these companies is technological change, where the latest smartphone could disintermediate a whole category of consumer electronics. Companies that successfully serve customers and innovate can enjoy high customer loyalty and pricing power, while those that struggle with these may go the way of the VHS tape.

The 4 consumer electronics stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q4: Peloton (NASDAQ: PTON)

Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.

Peloton reported revenues of $674 million, down 9.4% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

Peloton Total Revenue

Interestingly, the stock is up 27.6% since reporting and currently trades at $9.70.

Is now the time to buy Peloton? Access our full analysis of the earnings results here, it’s free.

GoPro (NASDAQ: GPRO)

Known for sponsoring extreme athletes, GoPro (NASDAQ: GPRO) is a camera company known for its POV videos and editing software.

GoPro reported revenues of $200.9 million, down 32% year on year, outperforming analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EPS estimates but a miss of analysts’ cameras sold estimates.

GoPro Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 27.5% since reporting. It currently trades at $0.80.

Is now the time to buy GoPro? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Apple (NASDAQ: AAPL)

Creator of the iPhone and shepherd of the App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.

Apple reported revenues of $124.3 billion, up 4% year on year, in line with analysts’ expectations. It was a mixed quarter. Apple’s total revenue met analysts’ expectations, but looking under the hood, we can see its Services segment outperformed. This business line helped the company beat Wall Street's operating income and EPS estimates because it has higher margins than its hardware-oriented Products segment.

Apple delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 3.1% since the results and currently trades at $244.90.

Read our full analysis of Apple’s results here.

Sonos (NASDAQ: SONO)

A pioneer in connected home audio systems, Sonos (NASDAQ: SONO) offers a range of premium wireless speakers and sound systems.

Sonos reported revenues of $550.9 million, down 10.1% year on year. This print beat analysts’ expectations by 5.2%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Sonos pulled off the biggest analyst estimates beat among its peers. The stock is down 6.5% since reporting and currently trades at $13.33.

Read our full, actionable report on Sonos here, it’s free.

Market Update

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.