What to Expect From Fitbit Earnings
Fitbit is scheduled to report its fourth-quarter financial results after the markets close Monday.
Fitbit Inc. (NYSE: FIT) is scheduled to report its fourth-quarter financial results after the markets close Monday. This will be the first full year that Fitbit will report as a public company. The consensus estimates from Thomson Reuters call for $0.25 in earnings per share (EPS) on $647.82 million in the fourth quarter.
Looking back at its initial public offering, Fitbit originally priced at $20.00, but it entered the market well above at $30.40 on June 18, 2015. On its first day of trading, roughly 52.1 million shares moved. The stock closed at $29.68 on its first day. What was especially exciting about the offering was that shares rose over 50% after its debut and that all of its 38 million shares had been traded in just its first 90 minutes of trading.
During the holiday sales season, Merrill Lynch released a very positive report about this company. The brokerage firm sees Fitbit as a winner in the rapidly growing health and fitness wearable market. It sees Fitbit as both highly profitable and experiencing hyper-growth, after 180% growth in 2014. The firm sees tailwinds from an expanding market space, larger international opportunities and Fitbit’s potential as a platform play in the long term.
A few other analysts recently weighed in on Fitbit as well:
- Piper Jaffray reiterated a Buy rating but lowered its price target to $24 from $60.
- Pacific Crest reiterated an Overweight rating and lowered its target to $31 from $47.
- SunTrust has a Buy rating and lowered its price target of $25 from $30.
- William Blair reiterated a Market Perform rating.
- Oppenheimer reiterated a Buy rating.
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So far in 2016, Fitbit has underperformed the market, with the stock down nearly 50% year to date. Over the past six months, the stock has dropped about 64%.
Shares of Fitbit were trading up 3.4% at $16.14 on Monday, with a consensus analyst price target of $33.84 and a 52-week trading range of $12.90 to $51.90.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
