Fitbit's current-quarter revenue forecast misses estimates

James Marshall
May 4, 2018

The scientific and technical instruments company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.06).

Fitbit stock is now flat in after-hours trading shortly after its earnings report was released. Craig Hallum initiated coverage on shares of Fitbit in a report on Monday, March 19th.

Fitbit (NYSE:FIT) last released its earnings results on Monday, February 26th. Bank of America reaffirmed an "underperform" rating on shares of Fitbit in a research report on Tuesday, February 27th.

Shares of NYSE:FIT - Fitbit closed the previous trading session at 4.94 down -0.56 10.18% with 9618260 shares trading hands. Five equities research analysts have rated the stock with a sell rating, ten have given a hold rating and six have given a buy rating to the stock.

CFO William Zerella was also on the call, and told Alex that the company's gross profit margin, which jumped to 47.1% from 40% a year earlier, was helped by lower warranty costs.

Fitbit (NYSE:FIT) is off 5.5% after hours following its Q1 results, where its loss wasn't as bad as analysts forecast but the company warned of demand challenges for trackers. Fitbit now has an average rating of Hold and a consensus price target of $6.16.

Fitbit said it expects current-quarter revenue to be in a range of $275 million to $295 million, below analysts' estimate of $309.9 million, according to Thomson Reuters I/B/E/S. LLC now owns 159,887 shares of the scientific and technical instruments company's stock worth $815,000 after acquiring an additional 23,966 shares during the period. The stock was sold at an average price of $4.62, for a total transaction of $69,300.00.

Hedge funds have recently added to or reduced their stakes in the stock. Finally, Ingalls & Snyder LLC bought a new position in Fitbit during the 4th quarter valued at $140,000. Alps Advisors Inc. bought a new position in Fitbit during the 1st quarter valued at $121,000. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.

On 3/1/2018 Jon Callaghan, Director, sold 15,000 with an average share price of $4.76 per share and the total transaction amounting to $71,400.00. Stone Ridge Asset Management LLC bought a new position in shares of Fitbit during the fourth quarter valued at approximately $139,000. Corporate insiders own 19.84% of the company's stock. Click to get this free report Fitbit, Inc. The Ionic and Aria 2 smart scale, along with the Versa, contributed to 34% of the revenue in that first quarter.

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