GoPro estimates trimmed at Stifel following AMBA guidance/commentary
Stifel notes that while anticipated in AMBA results (3Q revenue guide in line with consensus), Ambarella commentary around timing of wearable camera product launches strongly suggests that there is a low probability that an additional GoPro camera based on an Ambarella platform will launch before year-end. Considering both 1) the challenging anniversary of the sell-in of the HERO4 line in early 4Q a year ago and 2) the firm's impressions that the HERO+ LCD and HERO4 Session have been well received but aren't necessarily driving the category to new levels, they are taking a more conservative view on 4Q and 2016 estimates. Firm cuts FY4Q estimates from $767.2 mln and $1.04 to $710.1 mln and $0.92 (consensus of $728 mln and $0.94).
- GPRO shares are lower by 6% at 41.17 in the pre-market.