Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What's happening: Shares of GoPro (NASDAQ:GPRO) jumped as much as 15% on Wednesday after the company beat analyst estimates for both earnings and revenue in the first quarter. By 12:25 p.m., shares were up 11% from the previous close. The company reported revenue of $363.1 million, up 54.1% year-over-year and $22 million higher than the consensus analyst estimate. Non-GAAP EPS of $0.24 beat analyst expectations by six cents, rising 150% year-over-year.
Why it's happening: While shares of GoPro initially fell during after-hours trading on Tuesday, after the earnings report was released, strong guidance from the company turned the shares around. GoPro expects revenue between $380 million and $400 million during the second quarter, well above the analyst consensus estimates of $334 million. At the high end of this guidance, GoPro expects year-over-year revenue growth of 63%, an acceleration compared to the first quarter. Non-GAAP EPS is expected to be between $0.24 and $0.26, also well above analyst estimates of $0.16.
One of the biggest concerns for investors is whether GoPro's extremely popular cameras are anything more than a passing fad. Each quarter of rapid growth argues against that idea, and the extremely strong guidance from the company for the second quarter seems to have quelled any concern for now.