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 Q1.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.5%.
In light of this news, share prices of the companies have held steady as they are up 2.2% on average 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 $134.3 million, down 13.6% year on year. This print exceeded analysts’ expectations by 7.3%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ cameras sold estimates but a miss of analysts’ EPS estimates.
GoPro pulled off the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 1.4% since reporting and currently trades at $0.62.
Is now the time to buy GoPro? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $259.8 million, up 2.8% year on year, outperforming analysts’ expectations by 1.8%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 20.3% since reporting. It currently trades at $10.77.
Is now the time to buy Sonos? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $624 million, down 13.1% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
Peloton delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.5% since the results and currently trades at $6.25.
Read our full analysis of Peloton’s results here.
Apple (NASDAQ: AAPL)
Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.
Apple reported revenues of $95.36 billion, up 5.1% year on year. This print beat analysts’ expectations by 0.7%. Overall, it was a satisfactory quarter. It was good to see Apple narrowly top analysts’ revenue expectations, driven by the beat in Products segment. On the other hand, the Services segment slightly underperformed.
Apple achieved the fastest revenue growth among its peers. The stock is down 2.3% since reporting and currently trades at $207.93.
Read our full, actionable report on Apple here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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