Wednesday Morning Insights: Apple Inc. (AAPL), GoPro Inc (GPRO), Microsoft Corporation (MSFT), Exelixis, Inc. (EXEL)
Apple Inc. (NASDAQ:AAPL) shares slipped -6% in pre-market trading to $122.93 after the technology giant posted third quarter earnings. Although Apple beat estimates in both revenue and earnings per share, the company fell short of expected iPhone sales. Analysts expected Apple to sell more than 49 million units and the company reported selling 47.5 million. Although this still marks a 35% increase, the iPhone accounts for the majority of Apple’s revenue and investors are concerned that the product is reaching peak sales levels. Analysts were also disappointed by Apple’s forecast, estimating Q4 revenue between $49 billion and $51 billion, falling short of estimates of $51.1 billion. According to TipRanks, 24 analysts are bullish on AAPL, 12 are neutral, and 2 are bearish. As of this writing, the average 12-month consensus on the stock is $151.87, marking a potential 16% upside from where the stock last closed.
GoPro Inc (NASDAQ:GPRO) shares increased more than 3% in pre-market trading to $64.10 after the action camera company posted second quarter earnings results that beat expectations. GoPro crushed EPS estimates of $0.26 and posted non-GAAP EPS of $0.35, up over 300% from the $0.08 the company posted in the same quarter a year prior. GoPro posted quarterly revenue of $419.9 billion, beating the analyst estimate of $359.2 billion and marking a 71% year-over-year increase. The company highlighted the recent release of its HERO4 Session camera and HERO+ LCD and noted that it has launched five new products in the last ten months. According to TipRanks, 11 analysts are bullish are GoPro and 4 are neutral. The average 12-month price target on the stock is $72.55, marking a potential 17% upside from where the stock is currently trading.
Microsoft Corporation (NASDAQ:MSFT) shares fell more than -4% in pre-market trading to $45.35 after the company reported quarterly earnings. Although the company beat analysts’ estimates for both earnings and revenue, Microsoft was hit hard by hefty restructuring charges. Since the fall of the PC, Microsoft has been reconfiguring its business to focus on the Cloud. The company incurred a $7.5 billion cost for its Nokia acquisition, which attributed to a $3.2 billion quarterly net loss. Out of the 22 analysts polled by TipRanks in the last 3 months, 12 are bullish, 7 are neutral, and 3 are bearish. As of this writing, the average 12-month price target on the stock is $49.50, marking a potential 4.7% upside from where the stock last closed.
Exelixis, Inc. (NASDAQ:EXEL) dropped nearly -7% in pre-market trading to $5.63 following news that the biopharmaceutical plans to offer 20 million shares of its common stock in an underwritten public offering. Cowen & Co., William Blair, and Stifel will serve as the underwriters of the offering. The company recently released positive results from a Cabozantinib trial; a pipeline drug for kidney cancer. The study met its primary endpoint and the company hopes to complete regulatory filings for the product in early 2016. According to the 2 analysts polled by TipRanks in the past 3 months, 1 is bullish on the stock and 1 is neutral. The average 12-month price target is $6, marking a potential 1% downside from where the stock last closed.