Top 3 Earnings Today - GoPro, Yelp And Activision Blizzard

Will Q2 earnings revive the fortunes of GoPro Inc (NASDAQ:GPRO) stock?

The high definition camera maker GoPro (NASDAQ:GPRO) is scheduled to report its second quarter fiscal 2017 earnings today, after the market close. Investors will be hoping for Q2 earnings to revive the fortunes of the GPRO stock, which is down more than 26% in the last six months. In spite of high expectations for a turnaround, the mood ahead of the earnings is quite dreary. The average analyst estimates for the company's June quarter are a loss of 25 cents per share on revenue of $269.56 million. These numbers imply a 52% YoY EPS growth, and 22.1% YoY revenue growth.

The earnings whisper number, the Street's unofficial view, is a loss of 22 cents per share. Analysts are still not very optimistic about a turnaround after the earnings, but are gradually becoming more optimistic about the company's prospects. Recently, GoPro stock was upgraded to "equal-weight" from "underweight" at Morgan Stanley, the firm highlighted software improvements as one big positive for the company. While most analysts are still not hopeful of a turnaround, the option bulls think there could be a bigger-than-usual post-earnings swing for GPRO stock. After a few quiet days, recent options buyers have been adding GoPro calls at a brisk rate, hinting they expect the stock to move higher.

Is GoPro stock a good buy ahead of earnings? For the answer to this and other questions on earnings, please go through our detailed earnings preview of GoPro Inc.

What to expect from Yelp Inc's (NYSE:YELP) second quarter 2017 earnings?

San Francisco, California based Yelp Inc (NYSE:YELP) will report its Q2-2017 earnings today, after the closing bell. The latest earnings release holds a lot of prominence since this comes after a lackluster Q1 earnings performance, in which the top line came in below analyst expectations. The reduced net revenue guidance for the full year ahead only made things worse. The company reduced its net revenue guidance for 2017 from $880- $900 million to $850-$865 million. Coming to June quarter, Wall Street expects the company to report a loss of 3 cents per share where as the company delivered an earnings per share of 1 cent in the year ago quarter. Analysts expect the company to report a revenue of 204.93 million, an 18.2 % YoY growth. The whisper number for Yelp is a loss of 4 cents per share. This suggests the company could narrowly miss the earnings analyst estimates. However, the company has a strong earnings beat history, delivering an earnings beat in all of the last seven quarters.

YELP stock presently trades above its key Simple Moving Averages (SMA) be it the 20-day, 50-day and 100- day SMA. However, the stock has a stiff resistance at its 200- day SMA which it has failed to break since falling below it at the beginning of the year. A strong post earnings pop would require the stock to break the above resistance. With MACD trending downward and poised for a bearish crossover, a strong post earnings performance could be difficult. Yelp earnings need to impress investors of its diversification plans amid slow growth in advertising revenues. Investors would be closely watching the performance of the company's Deals, Partnerships, and Other Services.

Can Q2 earnings take Activision Blizzard, Inc. (NASDAQ:ATVI) stock to new all-time highs?

Activision Blizzard (NASDAQ:ATVI) stock is trading near its all-time highs ahead of its second quarter earnings scheduled for today, after the bell. There are very high expectations from the company's latest earnings with the stock already up by a whopping 70% in the YTD. The gaming company had guided for a GAAP revenue of $1.425 billion and a GAAP EPS of $0.15, translating into YoY drop of 9% and 11.76%, respectively. On a non-GAAP basis, revenues and earnings are likely to come in at $1.425 billion and $0.38 per share, respectively. The analyst estimates are well below the company's guidance. Wall Street expects the game developer to report a non-GAAP EPS of $0.3 on a revenue of $1.22 billion. The company had an outstanding last quarter in which it delivered a massive beat on both top line and bottom line numbers. A similar performance is expected in the latest quarter. The earnings whisper number of Activision is 35 cents per share. Q2 makes for one of the busiest periods of game content releases for the company, so investors would be hoping for another strong earnings result from the company. Shareholders would be also keen to see the user engagement metric(MAUs) which fell in the first quarter for Activision and King while for Blizzard it remained flat, in spite of a strong financial result.

The management revised it full year guidance in Q1 indicating that a solid earnings beat could be on the cards. With many releases lined up for the rest of the year, and the growing popularity of e-sports, Activision is set for a great outing in 2017. e-Sports is expected to be a big growth driver for the company going ahead. Investors would also be keen to know about the company's progress in business opportunities like advertising and consumer products. Overall, there is a strong sense among shareholders that the company will deliver higher than expected earnings and revenue in Q2. Even options traders are extremely bullish about ATVI stock's post earnings performance as a Schaeffers research post states that there has been a greater-than-usual demand for bullish options bets. A big earnings beat seems to be on the cards since the estimates are well below last year numbers.

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Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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