The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how GoPro (NASDAQ: GPRO) and the rest of the consumer electronics stocks fared in Q4.
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.
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. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a miss of analysts’ cameras sold estimates.
"In 2024 we undertook several initiatives to put us back on a path to return to growth and profitability in 2026. This includes our plan to reduce operating expenses for 2025 by nearly 30% and refining our roadmap to pursue improved product diversification and how efficiently we design our products," said Nicholas Woodman, GoPro's founder and CEO.
GoPro delivered the slowest revenue growth of the whole group. The stock is down 19.5% since reporting and currently trades at $0.89.
Is now the time to buy GoPro? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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, outperforming analysts’ expectations by 5.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Sonos achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $12.99.
Is now the time to buy Sonos? 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 an ok 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 $245.
Read our full analysis of Apple’s results here.
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 result surpassed analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
The stock is up 26.2% since reporting and currently trades at $9.59.
Read our full, actionable report on Peloton here, it’s free.
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