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Thursday Morning Pre-Market Insights: GoPro Inc (GPRO), Ambarella Inc (AMBA), Nokia Corporation (ADR) (NOK), NXP Semiconductors NV (NXPI)

GoPro Inc (NASDAQ:GPRO) plunged 17.11% in pre-market trading down to $25.08 after the company posted weak earnings and a disappointing forecast yesterday after market close. The company posted earnings of $0.25 on revenue of $400.3 million, missing estimates of $0.29 and $433.6 million, respectively. The company’s fourth quarter guidance didn’t offer investors much hope as the company forecasts Q4 earnings between $0.35 and $0.45, falling very short of estimates of $0.82. Furthermore, the company expects next quarter’s revenue to be between $500 million and $550 million, missing estimates of $688 million. In light of the dismal earnings, Erinn Murphy of Piper Jaffray downgraded the stock to underweight, anticipating that the stock will continue to fall. According to the 16 analysts polled by TipRanks in the last 3 months, 10 are bullish on the action camera company, 1 is bearish, and 5 are hanging on the sidelines. The average 12-month price target for the stock is $46.77, marking a 54% potential upside from where shares last closed.

Click here to see Erinn Murphy’s past ratings and performance

Ambarella Inc (NASDAQ:AMBA) fell 7.19% in pre-market earnings to $4.06 on the back of disappointing GoPro earnings, which missed analysts’ estimates for both earnings and revenue. Ambarella is the primary chip supplier for the action camera company and investors note that GoPro’s weakening demand for its camera will ultimately impact Ambarella as well. GoPro management acknowledged the rough quarter, noting that the new smaller Session model did not sell as many units as expected. However, GoPro management remains optimistic heading into the holiday season. According to the 11 analysts polled by TipRanks in the last 3 months, 5 are bullish on Ambarella and 6 are staying on the sidelines. The average 12-month price target for the stock is $104, marking an 84% potential upside from where shares last closed.

Nokia Corporation (ADR) (NYSE:NOK) spiked 8.28% in pre-market trading up to $7.19 as the company posted better-than-expected growth and confirmed that it is on track to complete its buyout of Alcatel-Lucent for $17 billion within the first quarter of 2016. Nokia posted third quarter profit of 391 million euros, beating estimates of 297 million euros. Analysts attribute the strong figure to growing business in China that offset slowing demand in Europe and North America. Furthermore, the company announced a dividends and buyback program that will return about $4.4 billion to shareholders. This $4.4 billion is more than the public expected and confirms that the company believes it will have the cash thanks to the Alcatel-Lucent acquisition. According to the 6 analysts polled by TipRanks in the last 3 months, 4 are bullish on the company, 1 is bearish, and 1 is staying on the sidelines. The average 12-month price target is $10.18, marking a 53% potential upside from current levels.

NXP Semiconductors NV (NASDAQ:NXPI) plummeted 18.15% in pre-market trading down to $74.44 after the company posted third quarter earnings that failed to meet analysts’ expectations. NXP Semi posted revenue of $1.52 billion, missing estimates of $1.55 billion. Looking forward, the company predicts that sales will fall by a percentage in the “low to upper teens,” disappointing analysts who were expecting an increase. Management noted that this conservative outlook represents a cautious view as near-term sales get back on track after sales took a hit from China’s economic slowdown over the summer. According to the 6 analysts polled by TipRanks in the last 3 months, all of them are bullish on the company. As of this writing, the 12-month price target is $128, marking a nearly 41% upside from where shares last closed.