Dj Seagate Technology Holdings Plc Stock Underperforms Tuesday When Compared To Competitors

GoPro, Inc GPRO reported non-GAAP breakeven earnings per share for the third quarter of 2024 in contrast to the Zacks Consensus Estimate of a loss of 4 cents per share. The company reported earnings per share of 6 cents in the year-ago quarter.

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GPRO generated revenues of $259 million, down 12% year over year due to lower camera unit sales. The metric was within the company’s guidance of $255 million (+/- $5 million). The top line beat the consensus mark by 1.6%.

GoPro shipped 881,000 camera units in the reported quarter, down 5% year over year.

GPRO’s Quarter in Details

Based on channels, revenues from GoPro.com of $51 million (19.7%) plunged 19% year over year. Our estimate was pegged at $52.8 million.

In this channel, hardware revenues totaled $23.5 million compared with $38.5 million in the prior-year quarter. Subscription revenues amounted to $27.5 million, up 11% year over year. This uptick was driven by improving retention rates and growth of Premium+ subscribers which led to a 9% increase in average revenue per user.

Retail channel registered revenues of $207.9 million (80.3%), which fell 10% year over year. We estimated the metric to be $202.1 million.

GPRO added 1,200 new retail doors across all regions in the quarter under review. Management noted that GoPro added more than 6,300 new retail doors since the second quarter of 2023.

GoPro, Inc. Price, Consensus and EPS Surprise

GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote

GPRO recorded 2.56 million subscribers (including 54,000 Premium+ subscribers), marking 2% year-over-year growth at the end of the quarter under discussion. Management envisions subscribers at 2024-end to be up 2% to 2.55 million.

Region-wise, revenues from the Americas totaled $109.3 million (42.2% of total revenues), down 17% from the prior-year levels. Revenues from Europe, the Middle East and Africa of $84.4 million (32.6%) were up 1% year over year. Asia Pacific region generated revenues of $65.2 million (25.2%), down 18% on a year-over-year basis.

The company had $155.3 million in inventory compared with $97.3 million in the previous quarter.

GPRO’s Margin Performance

Non-GAAP gross margin was 35.6% compared with 32.2% in the year-ago quarter. This increase in gross margin was driven by a cost reduction of more than 30% to the entry-level price point camera, improvements in the subscription model and lower expenses related to warranty and tariffs. Non-GAAP operating expenses of $91.2 million rose 3% year over year. Non-GAAP operating income totaled $0.95 million compared with $5.8 million in the prior-year quarter.

Adjusted EBITDA was $5.45 million compared with $7.23 million a year ago.

Cameras with suggested retail prices at or above $400 contributed 74% to revenues in the reported quarter compared with 75% in the prior-year quarter. Street ASP stood at $294 below the company’s guidance of $300 and $319 reported in the prior year quarter.

GPRO’s Cash Flow & Liquidity

In the quarter under review, GoPro used $2.2 million of net cash from operating activities compared with $1.6 million of cash used in the year-earlier quarter.

As of Sept. 30, the company had $130.2 million of cash and cash equivalents with $93.1 million of long-term debt.

Guidance

For the fourth quarter of 2024, revenues are estimated to be $200 million (+/- $10 million). Non-GAAP adjusted loss is forecasted to be 11 cents per share (+/- 2 cents).

Gross margin is anticipated to be 36.5% (+/- 50 basis points). Gross margin performance is expected to be driven by new product sales, increasing subscription and service revenues and improving product costs, partly offset by higher promotional activity. Street ASP is projected to be nearly $330, unchanged year over year.

GPRO continues to expect the launch of a new entry-level camera in 2025. The delay in launch will have a negative impact on revenues in the fourth quarter of 2024. Revenues for 2024 are anticipated to be $800 million (+/- $10 million) compared with the earlier projection of $850-$870 million. GPRO now expects units to be 2.45 million compared with 2.6-2.7 million projected earlier. It forecasts 2024 operating expenses to be approximately $360 million (+/- $2 million) and an operating loss of $84 million (+/- $3 million).

Apart from the delays, muted consumer spending in the absence of promotional activity, global macroeconomic concerns, forex volatility (China and Japan) and increasing competition remain headwinds.

Further, the company anticipates units and revenue growth in 2025 to be lower than that of in 2024, primarily driven by macroeconomic headwinds, competition and the delayed launch of its new 360-degree camera. However, operating expenses in 2025 are expected to be $250 million (+/- $5 million), due to a 26% reduction in headcount and other expenses undertaken in 2024. This is likely to boost profitability.

GPRO’s Zacks Rank

GoPro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in Broader Tech Space

Seagate Technology Holdings plc STX reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 46% in the past year.

Badger Meter, Inc BMI reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 57.6% in the past year.

Iridium Communications IRDM reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 21.3% in the past year.

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FUJIFILM Holdings Corporation FUJIY reported a second-quarter fiscal 2024 (ended Sept. 30, 2024) net income of ¥49.6 billion compared with ¥59.1 billion in the year-ago quarter.

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Revenues of ¥765.7 billion increased 5.2% year over year. The uptick was primarily driven by strong sales in Imaging and Electronics segments, along with favorable exchange rates.

Segment Details of FUJIY

In June 2024, the company established the Advanced Functional Materials division by integrating its display materials, industrial products and fine chemicals businesses.

In the fiscal second quarter, Healthcare segment revenues was ¥242.9 billion, up 0.6% from the year-ago quarter.

Within Healthcare, Medical Systems revenues rose 1.4% year over year to ¥166.9 billion. Robust sales of endoscopes (especially in Southeast Asia) and IVD systems were the primary drivers. Bio CDMO revenues were down 4.7% to ¥48.1 billion. Life sciences revenues were ¥27.9 billion, up 5.8% year over year.

In the Electronics segment, revenues amounted to ¥108.7 billion, up 31.4% year over year. Semiconductor Materials revenues rose 46.7% year over year to ¥63 billion, driven by the semiconductor market recovery and contributions from the semiconductor process chemicals business acquired from Entegris in October 2023. Advanced Functional Materials revenues soared 14.9% to ¥45.7 billion.

Fujifilm Holdings Corp. Price, Consensus and EPS Surprise

Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote

The Business Innovation Solutions segment’s revenues were ¥287.7 billion, declining 0.7% from the year-ago quarter’s figure. Office solutions revenues decreased 7.2%, whereas Business solutions and Graphic Communications’ revenues moved up 6.6% and 2.8% on a year-over-year basis, respectively.

The Imaging Solutions segment’s revenues were ¥126.5 billion, up 11% from the year-ago quarter’s level. Consumer Imaging and Professional Imaging revenues rose 7.6% and 17% on a year-over-year basis, respectively. This growth was driven by strong sales of instax instant photo systems along with robust sales of the entry-level instax mini 12 (launched in March 2024). Higher sales of digital cameras acted as a catalyst for the Professional Imaging segment.

FUJIY’s Operating Details

In the fiscal second quarter, selling, general and administrative expenses increased 9.4% to ¥199.3 billion. Research and development expenses jumped 1.5% to ¥40.4 billion.

Operating income increased 0.1% year over year to ¥73.4 billion owing to robust sales in electronics and imaging, along with favorable exchange rates that offset the impact of higher one-time costs in healthcare.

FUJIY’s Balance Sheet & Cash Flow

As of Sept. 30, 2024, cash and cash equivalents were ¥187.1 billion, down from ¥195.3 billion as of June 30, 2024.

Total debt was ¥619.8 billion as of Sept. 30, 2024, compared with ¥580.6 billion as of June 30, 2024.

FUJIFILM is planning an annual dividend of ¥60 per share, marking the 15th consecutive year of increase.

FUJIY’s Guidance Unchanged

FUJIFILM expects revenues of ¥3,150 billion for fiscal 2024, indicating growth of 6.4% year over year. The operating income is anticipated to be ¥315 billion, implying 13.8% growth. Net income is expected to increase 2.7% year over year to ¥250 billion.

Zacks Rank of FUJIY

Currently, FUJIFILM has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in Tech Space

Seagate Technology Holdings plc (STX) reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 43.3% in the past year.

Badger Meter, Inc BMI reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 57.8% in the past year.

Iridium Communications IRDM reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 19% in the past year.

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ANSYS Inc ANSS reported third-quarter 2024 earnings of $2.58 per share, beating the Zacks Consensus Estimate by 37.2%. The bottom line also increased 83% year over year.

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Revenues of $601.9 million beat the Zacks Consensus Estimate by 13.3%. The top line rose 31.2% year over year on both reported and constant currency basis. This revenue growth was driven by solid multi-year lease growth. ANSS closed an $88 million contract in the high-tech industry in the region of the Americas in the third quarter. This contributed to multi-year lease growth.

In January 2024, Ansys and Synopsys announced a definitive agreement, per which the latter will acquire ANSS. The terms of the agreement outline that Ansys’ shareholders will receive $197 in cash, along with 0.3450 shares of Synopsys common stock for each of its share.

ANSYS, Inc. Price, Consensus and EPS Surprise

ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote

This deal, valued at approximately $35 billion, is anticipated to close in the first half of 2025. Ansys added that it along with Synopsys has received foreign direct investment approvals for the anticipated transaction in almost all of the relevant jurisdictions. On Oct. 9, 2024, the company also received an unconditional clearance from the Israeli Competition Authority.

Given the pending acquisition, Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook. It expects 2024 annual contract value or ACV to grow in double-digits.

Shares of ANSS are up 1.5% in the pre-market trading today. In the past year, shares have gained 16.2% compared with the subindustry’s growth of 22.1%.

ANSS’ Quarter in Detail

Subscription lease revenues (32.3% of total revenues) were up 87.4% year over year at cc to $194.3 million. Perpetual licenses revenues (13.7%) were up 39.9% at cc to $82.6 million.

Maintenance revenues (51%) climbed 10.5% year over year at cc to $306.7 million. Service revenues (3%) were down 0.3% at cc to $18.3 million.

Direct and indirect channels contributed 74.6% and 25.4%, respectively, to total revenues. ACV grew 18.1% year over year to $540.5 million. The figure was up 17.8% at cc.

On a regional basis, the Americas, EMEA (comprising Germany, the United Kingdom and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 50.9%, 22.8% and 26.3% to revenues, respectively. Revenues from the Americas were up 40.4% year over year at cc to $306.5 million. EMEA revenues were up 10.7% at cc to $137 million. Revenues from the Asia-Pacific increased 35% at cc to $158.4 million.

Total deferred revenues and backlog was $1,463.8 million, up 21.4% year over year.

Operating Details of ANSS

Non-GAAP gross margin was up 170 basis points (bps) on a year-over-year basis to 92.8%.

Total operating expenses jumped 14.7% year over year to $371.3 million, primarily due to increased selling, general and administrative and research and development expenses.

Non-GAAP operating margin increased 45.8% compared with 34.1% reported in the prior-year quarter.

ANSS’ Balance Sheet & Cash Flow

As of Sept. 30, 2024, cash and short-term investments amounted to $1295.3 million compared with $1119.3 million as of June 30, 2024.

As of Sept. 30, 2024, the company’s long-term debt was $754.1 million, which was a slight increase from the level of June 30, 2024.

In the quarter under review, cash from operations was $174.2 million compared with $160.8 million in the prior-year quarter.

Zacks Rank of ANSS

ANSS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in Tech Space

Seagate Technology Holdings plc STX reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 43.3% in the past year.

Badger Meter, Inc BMI reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 57.8% in the past year.

Iridium Communications IRDM reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 19% in the past year.

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Sensata Technologies Holding plc ST reported third-quarter 2024 adjusted earnings per share (EPS) of 86 cents compared with 91 cents a year ago. The bottom line matched the Zacks Consensus Estimate.

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Revenues for the quarter reached $982.8 million, down 1.8% from a year ago. The top line missed the consensus estimate by 0.2%.

Segmental Results

Performance Sensing revenues (67.1% of total revenues) fell 5.3% year over year to $659.7 million. The top line fell mainly due to local original equipment manufacturers (OEMs) gaining market share from multinational companies in China, partially offset by growth in the Heavy Vehicle & Off Road sector, particularly in North American and European on-road trucks. Segmental adjusted operating income was $161.9 million compared with $177.6 million in the prior-year quarter.

Sensata Technologies Holding N.V. Price and Consensus

Sensata Technologies Holding N.V. price-consensus-chart | Sensata Technologies Holding N.V. Quote

Sensing Solutions revenues (27.9%) were $274.4 million, down 0.3% from the previous year. The considerable year-over-year decrease was due to continued destocking and a sluggish housing construction market adversely impacting the industrial sector. However, the company anticipates future growth, particularly with its A2L leak detection sensor, which is gaining traction in a growing market. Moreover, Sensata's Dynapower business recently received approval for its fifth-generation compact power systems, providing dual-purpose performance for hydrogen production and fuel cells. Segmental adjusted operating income was $81 million compared with $80.7 million in the prior-year quarter.

Other revenues (5%) were $48.8 million, up 66.4% from the prior-year period.

Other Details

Total operating loss was $199.2 million against operating income of $116.3 million in the year-ago quarter. This loss is attributed to a $150 million good will impairment charge for the Dynapower business, $141 million in restructuring expenses linked to the sale of the Insights business and product exits and $27 million in costs tied to product lifecycle management.

Total operating expenses were $1182.1 million, up from $885 million reported in the prior-year quarter. Adjusted operating income was $188.4 million, declining 1.7% year over year.

Adjusted EBITDA totaled $217.6 million in the quarter, down from $228.3 million in the previous year’s quarter.

Cash Flow & Liquidity

During the quarter, Sensata generated $130.9 million of net cash from operating activities compared with $138.9 million in the prior-year quarter. Free cash flow was $91.3 million compared with $87.2 million a year ago.

As of Sept. 30, 2024, the company had $506.2 million in cash and cash equivalents and $3,174.4 of net long-term debt compared with $1,033 million and $3,170.8 million, respectively, as of June 30, 2024.

In the third quarter of 2024, Sensata returned approximately $55.4 million to shareholders, which included $37.2 million spent on repurchasing shares and $18.1 million paid out in dividends of 12 cents per share, on Aug. 28, 2024.

Guidance

Sensata has revised its guidance for the fourth quarter of 2024. This can be attributed to the $50 million sale of the Insights business in the third quarter, the exit of underperforming products totaling about $20 million and reduced production forecasts in the automotive and heavy vehicle industries with OEMs managing rising inventory levels.

For the quarter, the company projects revenues in the band of $870-$900 million, indicating a decline of 11-8%. Adjusted operating income is expected to be $167.2-$175.2 million, implying a year-over-year decrease of 11% to 7%.

Adjusted EPS is estimated to be 71-76 cents, suggesting a decline of 17-12%. Adjusted net income is anticipated in the $107-$115 million range, indicating a decrease of 18% to 12%.

Zacks Rank

Sensata currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Companies in Tech Space

Badger Meter, Inc. BMI reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 88 cents.

Iridium Communications IRDM reported earnings per share of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of 1 cent per share in the prior-year quarter.

Seagate Technology Holdings plc STX reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis.

Zacks Investment Research