Dallas, Texas 07/20/2015 (Financialstrend) – GoPro Inc (NASDAQ:GPRO) should beat earnings estimates when it posts it second quarter earnings according to the Street which is also expecting a possible guidance raise. Analysts expect drones, IP video surveillance Police, and consumer cameras to play a key role in the stock’s upward momentum going forward. The giant cam maker has already announced plans to launch a quadcopter drone in 2016 as it moves to challenge renowned drone makers for market share.
Focus on Drone Market
There is only one major consumer-based drone company that GoPro Inc (NASDAQ:GPRO) will have to compete with for market share in the US in the name of DJI. The drone market being a $1.4 billion market according to Goldman Sachs should provide more opportunities for growth going forward.
GoPro’s dominance of the action camera market should also play a bigger role in the push for more sales in the drone industry. The fact that drones carry cameras with them for capturing aerial view should attract more sales in the fast-growing industry. Some of the aerial footage that GoPro Inc (NASDAQ:GPRO) would love to immerse itself into includes weddings, sports as well as family activities and anything else done on the outside.
Analysts at Barclays have already upgraded the stock buoyed by the pipeline products in development, expected acquisitions as well as external hires. Continued brand strength continues to turn most of the skepticism into optimism. GoPro Inc (NASDAQ:GPRO)’s high-end products remain best sellers, its Hero 4 session camera having generated the second highest levels of searches on Google Inc (NASDAQ:GOOGL).
Expansion into the drones market is expected to result in an increase of $2.61 in earnings per share by 2017. New developments like 360 video as well as better software should expand GoPro Inc (NASDAQ:GPRO)’s lead in the business. Penetration into Europe and China is also expected to offer more opportunities for growth.