Friday Morning Pre-Market Insights: GoPro Inc (GPRO), Endo International plc (ENDP), FireEye Inc (FEYE)

GoPro Inc (NASDAQ:GPRO) shares are falling nearly 9% to $9.71 in pre-market trading Friday, after the wearable camera maker reported mixed first-quarter results, and indicated it was delaying the launch of its drone, Karma by roughly six months.

Piper Jaffray analyst Erinn Murphy comment: “GoPro’s first drone was expected to launch in 1H of this year but is now being pushed back to launch during this year’s Holiday season. While the delay does not come as a total surprise to us, mgmt indicated that they pushed back the drone launch just within the last few weeks. From our perspective, the drone was not delayed because of supply chain issues but rather to allow the team further time to enhance the functionality & ease of use. We also suspect pricing of the drone could be in flux.”

The analyst continued, “While sales beat our estimate in Q1, gross margin missed and the company reported an LPS of ($0.63) vs. our ($0.61) estimate. Despite the sales beat, units were below our estimate. We note the company is pulling back on sell-in during 1H and expects inventory to be clean by Q2-end. Mgmt kept their FY guidance, which to us represents a high-bar and our estimates are now settling in before the low-end of guidance. We are reducing our FY16 sales estimate from $1.37B to $1.19B and our LPS estimate widens.”

According to TipRanks, out of the 19 analysts who have rated GPRO in the past 12 months, 5 are bullish, 12 remain on the sidelines, and 2 are bearish .The average 12-month price target for the stock is $14.58, marking a 36% upside from where shares last closed.

Endo International plc (NASDAQ:ENDP) caused some serious pain to investors this morning as the stock price tumbled nearly 34% in pre-market trading. The pharmaceutical giant reported disappointing first-quarter results, with revenues of $964 million and EPS of $1.08, compared to consensus estimates of $960 million and EPS of $1.05. Management also cut FY:16 revenue guidance from $4.32- $4.52 billion to $3.87 -$4.03 billion based on weakness in its Qualitest legacy business, delays in FDA actions related to the 505(b)(2) products, and the entry of a generic Voltaren Gel competitor.

In reaction, RBC Capital analyst Randall Stanicky downgraded the stock from Outperform to Sector Perform, while slashing the price target to $26 (from $45). Stanicky noted, “We had held on to our Outperform rating despite near-term generic concerns on the view that valuation could support the stock into an eventual recovery in 2017E. After last night’s update, we now think that turnaround is going to take longer than we had anticipated and further P&L risks remain.”

According to TipRanks’ statistics, out of the 14 analysts who have rated the company in the past 3 months, 4 gave a Buy rating, while 9 remain on the sidelines. The average 12-month price target between these analysts is $48.23, marking a 81% potential upside from current levels.

FireEye Inc (NASDAQ:FEYE) shares are also suffering this morning, down 10.20% to $14.35, after the cybersecurity software maker reported mixed first-quarter results, with revenue of $168 million, slightly below consensus estimates of 172 million, but billing of $186 million topped Street’s $176.6 million.

Oppenheimer analyst Shaul Eyal comment: “FEYE’s path to profitability remains on track as internal realignments coupled with a transitioning business model yielded LPS of $0.47— better than Street’s ($0.50). Where FY16 revenue range was lowered, FEYE kept LPS, billings & cash flow targets intact. In addition, CEO Dave DeWalt remains Chairman and will be succeeded by Kevin Mandia as CEO. We expect a smooth transition as Mr. Mandia has been with FEYE’s executive team for more than 2 years. In sum, while we expected a better top-line performance, we remain encouraged by the billings performance and path to profitability.”

According to TipRanks, out of the 14 analysts who have rated the company in the past 3 months, 6 gave a Buy rating, while 8 remain on the sidelines. The average 12-month price target for the stock is $23.92, marking a 50% upside from where shares last closed.




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