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Tech Earnings Roundup: YELP, GPRO, FIT, FEYE

It was another busy day of earnings announcements, and some of Wall Street’s most notable tech stocks chimed in with their latest reports. The technology sector has been on fire this year, so investors will want to pay close attention to today’s earnings reports, as they could set help set the tone for tech investing throughout the remainder of 2017.

According to our Zacks Sector Rank data, the broad “Computer and Technology” group has posted an average return of 27.43% so far this year. This outpaces the S&P 500’s respectable 16.56% gain and affirms the thesis that tech stocks have been dominating Wall Street recently.

Today, investors will likely be focused on the earnings announcement from Facebook FB. And indeed, the social media behemoth is gaining in after-hours trading after posting another solid earnings beat (also read: Facebook Posts Q3 Earnings Beat, User Growth Hits 16%).

But several other notable tech firms also reported this afternoon. Here’s a quick recap on a few that you might have missed:

Yelp, Inc. (YELP)

Yelp announced its fiscal third-quarter results. The company posted earnings of 9 cents per diluted share, beating the Zacks Consensus Estimate, which called for a loss of one cent. Revenues of $222.4 million were up 19% year-over-year and also ahead of our consensus estimate of $220.5 million.

Nevertheless, shares of the online business review platform tanked more than 10% in after-hours trading shortly after the release of its report. Investors seem to be reacting to the company’s relatively weak fourth-quarter guidance. Management now expects Q4 revenues in the range of $211 to $216 million, which is well below our current consensus estimate of $233.5 million. 

GoPro, Inc. (GPRO)

GoPro also announced its fiscal third-quarter results today. The action camera maker reported revenue of $329.8 million, which was up 37% year-over-year and well ahead of our consensus estimate of $314.3 million. The company posted GAAP earnings of 10 cents per share and non-GAAP earnings of 15 cents per share. The Zacks Consensus Estimate was calling for break-even results from GoPro.

Management guided for revenue of $470 million (+/- $10 million), GAAP earnings between 25 cents and 35 cents, and non-GAAP earnings between 37 cents and 47 cents in the all-important holiday quarter. These figures are below our current consensus estimates, and subsequently, GPRO has slipped more than 8% in after-hours trading.

Fitbit, Inc. (FIT)

Fitness gadget pioneer Fitbit also joined the party, releasing its own third-quarter report after the bell Wednesday. The wearable tech company reported revenues of $392.5 million, which was down significantly from the year-ago period but ahead of our consensus estimate of $390.9 million. Fitbit posted a non-GAAP loss of one cent per share, beating the Zacks Consensus Estimate of a three cent loss.

Fitbit also provided decent guidance in its report. For the fourth quarter, management expects revenue in the range of $570 million to $600 million, which is relatively in-line with our current consensus estimate of $585.7 million. After closing about 1.8% higher today, Fitbit shares bounced an additional 0.65% in after-hours trading.

FireEye, Inc. (FEYE)

Finally, we also had our eye on cybersecurity expert FireEye. The company posted revenues of $189.6 million and a non-GAAP loss of 4 cents per share, beating our respective consensus estimates of $186.2 million and a loss of 7 cents per share. FireEye noted also that billings were down 6% year-over-year but ahead of its guidance range.

However, the stock is slipping on management’s sluggish fourth-quarter guidance. Revenue is expected to be in the range of $190 million to $196 million, which is on the low end of our consensus estimate of $195 million. Shares of FEYE tanked over 12% in after-hours trading.

Make sure to check back here for our full analysis on each of these reports, as well as our take on what these results could mean for the rest of the technology sector!

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