Alright, guys…it happened again. The stock price negotiated for value between $16.95 to $18.00 in recent trading session. The flip side of that is that Fitbit is likely to benefit from a surge in popularity of wearable devices over the next few years, as long as it’s able to keep up with regular new product releases that appeal to customers. However, its earnings per share dropped 63 percent year-over-year from 27 cents in Q1 2015.
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Fitbit predicted revenue in the range of $565 to $585 million, while S&P analysts had put it at $533 million.
During the quarter the company sold 4.8 million connected health and fitness devices, compared to 3.9 million in the same period from previous year.
First-quarter adjusted profit was 10 cents a share, and revenue climbed 50 percent to $505.4 million, which topped the average analyst estimate of $444.6 million.
If investors needed more reasons to be bullish on FIT stock, they got it in the guidance. Analysts forecast that Fitbit will post $1.13 EPS for the current fiscal year.
Investors may be disappointed in Fitbit Inc.’s lowered outlook due to increased spending, but the company’s CEO says it’s all going according to plan. (NASDAQ:AAPL). The two products made up 47% of the company’s revenue in the first quarter. Successful launches for both new releases, the Fitbit Blaze and Fitbit Alta, saw sales of over 1 million units apiece. The Fitbit platform – which consists of devices, apps, social and motivational features, advice and personalized coaching – helps people make behavioural changes to be more active, exercise more, eat smarter, track their sleep and manage their weight. Now the stock has been rated as “Buy” from 10 Analysts. Leerink Swann lowered their price target on shares of Fitbit from $81.00 to $49.00 in a research report on Thursday, January 7th.
EPS growth ratio for the past five years was 15.60 % while Sales growth for the past five years was 35.90 %.
Fitbit Asia Pacific senior marketing director Jaime Hardley said the latest collaboration is a natural fit.
But I feel like such criticisms aren’t intellectually honest.
The San Francisco company, known for its fitness-measurement wristbands, had warned that results in the March quarter would be lower as it launched its smartwatch and other products.
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Today’s FIT stock selloff is overdone, plain and simple. But Wall Street simply has an irrational hatred of this stock, at least in the short-term. But if Fitbit can continue to fend off Apple and convert users to its higher-priced and fuller-featured devices, at some point, Wall Street will have to cool it with the skepticism.
