Founded in 2007, San Francisco-based FitBit Inc (FIT – Snapshot Report) is a popular fitness company that manufactures and markets wearable fitness-tracking devices. The company's product list includes the original FitBit Tracker, FitBit Ultra, FitBit One, FitBit Zip, FitBit Flex, FitBit Force, FitBit Charge, FitBit Charge HR (heart rate), FitBit Surge, and FitBit Aria, a Wi-Fi smart scale. The devices track the amount of steps taken, distance traveled, calories burned, and other health-related data. FitBit sells its products mostly through retailers and distributors.
Business conditions continue to flourish for FitBit, primarily due to a fast-growing health market as more and more consumers focus on living a healthy lifestyle. The company, however, is facing increasing competition in the health and wellness space from other wearable makers like Jawbone, who makes similar bands, Garmin Ltd's (GRMN – Analyst Report) fitness and heart-rate band, and apple Inc's (AAPL – Analyst Report) Apple Watch.
FitBit recently made their market debut, filing its IPO on May 7, 2015, and the earnings report for its second quarter will be their first. The company's IPO was very successful; shares rose over 50% after its debut and, all of FitBit's 38 million shares had been traded within the first 90 minutes of trading.
Currently, FitBit has a Zacks Rank #3 (Hold) but that could change following its fiscal second quarter 2015 earnings report. We have highlighted some of the key details from the just-released announcement below.
Earnings: FitBit beat on earnings. Adjusted EPS came in at $0.21 cents, surpassing the Zacks Consensus Estimate of 0.07 cents.
Revenue: Revenues of $400 million beat the Zacks Consensus Estimate of $322 million by 80.5% and were up by 253% year-over-year.
Key Stats: FitBit sold 4.5 million health and fitness wearable devices in the second quarter of 2015. Their international revenue increased 250% year-over-year for the second quarter of 2015.
Stock Price: FIT was down $5.54, or 10.73%, to $46.10 as of 4:38 PM ET in after hours trading shortly after its earnings report was released.
Check back later for our full write up on this FIT earnings report later!
