What to Expect From Fitbit Earnings

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.