The maker of wearable fitness tracking products managed to report healthy revenues and adjusted earnings per share (EPS) in its first quarterly reporting session as a public company.
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Fitbit Inc (NYSE:FIT) reported net income of $17.68 million, up 19.8% from $14.75 million in the prior year quarter.
The Q2 results are the company’s first since its $4 billion IPO on June 17th, which saw its initial $20 share price jump to more than $30 by the day’s end. Revenue grew 252.5% year over year to $400.4 million for the quarter, above analysts’ estimates of $319.45 million. Seven research analysts have rated the stock with a hold rating and seven have issued the stock with a buy rating. The company has a market capitalization of $9.18 billion and a price-to-earnings ratio of 95.71. Analysts at Piper Jaffray believe that the sudden slump in the stock price is nothing more than an overreaction tied to gross margins, which came slightly lower than the Street’s expectations. They now have $47.02 target price on the stock. On its opening day, share prices shot up a whopping 55%. Also, Director Jon Callaghan sold 3,133,707 shares of Fitbit stock in a transaction dated Tuesday, June 23rd. The transaction was disclosed in a filing with the SEC, which is available at this link. Analysts now expect the company to earn $0.61 per share on revenue of $1.41 billion for the full year 2015. The stock was sold at the average cost of $18.80, for a whole trade of $58,913,691.60. The disclosure for this sale can be found here.
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The negative reaction of the market to Twitter Inc (NYSE:TWTR) is at odds with how the world’s foremost money managers are treating the stock. The Company’s Fitbit platform combines connected health and fitness devices with software and services, including an online dashboard and mobile applications, data analytics, motivational and social tools, personalized insights, and virtual coaching through fitness plans and interactive workouts. “Its wrist-established and clippable devices mechanically trail users” daily steps, calories burned, distance traveled, floors climbed, and busy minutes and display real-time suggestions to encourage them to be active within their everyday lives. It operates a provider of interactive video, FitStar -based exercise encounters on mobile devices and computers.
