What to Watch in Fitbit’s Q4 Report

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Fitbit Inc. (NYSE: FIT) is set to report its fourth-quarter financial results after the markets close on Wednesday. The consensus estimates are $0.07 in earnings per share (EPS) and $568.16 million in revenue. In the same period of last year, the company said it had a net loss of $0.02 per share and revenue of $570.76 million.

The company previously issued fourth-quarter guidance of EPS of at least $0.07 and revenues greater than $560 million.

In the third quarter report, the company sold 3.5 million devices. Also, new products introduced in the past year represented 62% of revenue. The average selling price was up 3% year over year to $108.

In terms of its segment revenue for the third quarter, the firm reported that Asia Pacific was flat at $34 million, Other America’s revenue dropped 2% to $25 million, Europe Middle East Asia revenue grew 17% to $104 million, and U.S. revenue decreased 6% to $230 million. International revenue was $163 million, representing 42% of revenue.

Excluding Wednesday’s move, Fitbit had outperformed the broad markets, with its stock up about 33% year to date. Over the past 52 weeks, the stock was up 25%.

A few analysts weighed in on Fitbit ahead of the report:

  • Wedbush has a Neutral rating and a $6.50 price target.
  • William Blair has a Market Perform rating.
  • Morgan Stanley has a Sell rating with a $4 target.
  • Robert Bard has a Hold rating with a $6 price target.

Shares of Fitbit were last seen up about 4% at $6.89 on Wednesday, in a 52-week range of $4.23 to $7.79. The stock has a consensus price target of $6.43.

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