We're now well into the fourth quarter of the year and that means that revenues have been released for the third quarter. Here are two interesting stories we picked up on from Dorel Industries and GoPro.
Dorel Industries
In October, we reported on Dorel Industries' decision to suspend its dividend due to tariffs impacting revenue, however it seems like the impact hasn't been felt on the bike side of the company.
Dorel Sports, the cycling wing of Dorel Industries, has reported a 14.2% increase in revenue this quarter, up from $219 million to $250 million compared to the same period last year. This is the first double-digit growth in revenue for the company in five years. Dorel Sports includes brands such as Cannondale and GT and credits Cannondale's 2020 lineup, especially its ebikes in Europe, for the growth. Caloi, its Brazilian bike business, also delivered strong double-digit revenue growth thanks to its Yellow Bike Sharing program.
Dorel Industries as a whole saw earnings jump 2.3% in the same period from $670.4 million a year ago to $685.7 million in 2019 however the operating profit was down from $7 million to $6 million.
Schwartz was confident the growth would continue into the fourth quarter, concluding: "With the shift of orders at Pacific Cycle from the third to the fourth quarter, this provides the confidence that the segment will deliver a solid fourth quarter versus the prior year in both sales and adjusted operating profits.”
Dorel's stock remains at record low levels.
Read the report in full here.
GoPro
GoPro's revenue fell 54.1% in the third quarter of 2019 however its stock rose as it still outperformed gloomy predictions from analysts. This continues a rocky period for GoPro that includes the closure of its drone business, falling revenues and the reports that it had hired JPMorgan to explore options for a sale - although this was later denied.
GoPro's revenue was $131 million for the third quarter, down from $285 million last year. However, this was actually $5 million more than expected, which caused a small rise in its value.
In October, GoPro had warned that revenue would fall following a production delay with the new Hero 8 cameras, which shifted the bulk of its sales from the third quarter to the fourth quarter. Unfortunately, GoPro had already announced the camera, which meant demand for the Hero 7 fell as it was no longer the brand's flagship camera. Forecasted growth was cut from 9%-12% to just 6%-9% and management also reduced the midpoint of its adjusted gross margin for the second half of 2019 from 37.5% to 36.5%.
GoPro is now expecting a successful fourth quarter as the Hero 8 hits the market properly. It claims that the Hero 8 and Max are: "generating the highest positive social sentiment metrics of any new GoPro and are setting record unit sales for new cameras at GoPro.com". It also highlighted a 21% growth in subscribers for GoPro Plus, a rise of 21% over the quarter.
Dorel Industries
In October, we reported on Dorel Industries' decision to suspend its dividend due to tariffs impacting revenue, however it seems like the impact hasn't been felt on the bike side of the company.
Dorel Sports, the cycling wing of Dorel Industries, has reported a 14.2% increase in revenue this quarter, up from $219 million to $250 million compared to the same period last year. This is the first double-digit growth in revenue for the company in five years. Dorel Sports includes brands such as Cannondale and GT and credits Cannondale's 2020 lineup, especially its ebikes in Europe, for the growth. Caloi, its Brazilian bike business, also delivered strong double-digit revenue growth thanks to its Yellow Bike Sharing program.
 | As expected and previously communicated, the third quarter was a difficult one primarily due to various issues related to U.S. imposed tariffs. We raised prices in the quarter and this has had several negative consequences. Retailers altered their purchasing decisions, which resulted in a considerable product mix imbalance. In addition, some of our large U.S. customers delayed holiday orders from September to October. All Dorel segments have done an excellent job of holding the line on most expenses and creative product development has resulted in many new exciting introductions. Cannondale’s new line-up is driving Cycling Sports Group success. Margin and profitability are not yet where we want them to be, but the signs are positive and progress is being made. |
Dorel Industries as a whole saw earnings jump 2.3% in the same period from $670.4 million a year ago to $685.7 million in 2019 however the operating profit was down from $7 million to $6 million.
Schwartz was confident the growth would continue into the fourth quarter, concluding: "With the shift of orders at Pacific Cycle from the third to the fourth quarter, this provides the confidence that the segment will deliver a solid fourth quarter versus the prior year in both sales and adjusted operating profits.”
Dorel's stock remains at record low levels.
Read the report in full here.
GoPro
GoPro's revenue fell 54.1% in the third quarter of 2019 however its stock rose as it still outperformed gloomy predictions from analysts. This continues a rocky period for GoPro that includes the closure of its drone business, falling revenues and the reports that it had hired JPMorgan to explore options for a sale - although this was later denied.
GoPro's revenue was $131 million for the third quarter, down from $285 million last year. However, this was actually $5 million more than expected, which caused a small rise in its value.
In October, GoPro had warned that revenue would fall following a production delay with the new Hero 8 cameras, which shifted the bulk of its sales from the third quarter to the fourth quarter. Unfortunately, GoPro had already announced the camera, which meant demand for the Hero 7 fell as it was no longer the brand's flagship camera. Forecasted growth was cut from 9%-12% to just 6%-9% and management also reduced the midpoint of its adjusted gross margin for the second half of 2019 from 37.5% to 36.5%.
GoPro is now expecting a successful fourth quarter as the Hero 8 hits the market properly. It claims that the Hero 8 and Max are: "generating the highest positive social sentiment metrics of any new GoPro and are setting record unit sales for new cameras at GoPro.com". It also highlighted a 21% growth in subscribers for GoPro Plus, a rise of 21% over the quarter.
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101 Comments
“As an engineer...”
“...ceteris paribus”
Shows buddies a clip that looks like flat single track.
Yep, no surprise on the GoPro front.
Plus, if something looks good on film you know you went big!
www.pinkbike.com/news/remy-metailler-followed-by-kirk-mcdowall-down-live-like-lisa--pemberton-bc.html
im still on the fence.... do I need it?
Cars are different because they are something people use every day and and are a necessity for most people, not a luxury. Same goes for electronics like phones and laptops, a much different story. These items literally become obsolete and stop working properly beyond a certain age. Batteries degrade, storage can't handle newer software and files, etc.
If your company had a unique manufacturing process or a special rubber, plastic, alloy etc that used a secret ingredient (which I don't think GoPro do - they're a design company not a materials or manufacturing company) that's when you would be unwise to outsource your manufacturing to China as that secret would be unlikely to stay secret for long.
Later that year- "Nah, not much of a sale. Might as well wait for the new one in a month."
Not to mention doing away with GoPro studio and the shitty GoPro app is useless.
Makes cameras that work and include a half decent editing software and I’d buy one
I got the "Hero" last year on sale for $100 then flashed it back to a Hero 5 Black. Got back 4k and considerably cheaper than their so called "new budget" offerings at the time.
1) Does it still randomly drain the battery even when off? forcing you to remove it?
2) does it have same form factor allowing use of the gimbal?
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