Fitbit Inc. (FIT) to Announce First Earnings as Public Company: Analyst Bullish

Fitbit Inc. (NYSE:FIT), a wearable technology company, is set to announce its Q2 fiscal 2015 earnings on August 5 after market close. The Street predicts that the company will post EPA of $0.08 and revenue of $319.45 million for the quarter.

According to MarketWatch, Fitbit is considered the leading company in fitness and wearable technology as it has captured the majority of the market share. Many analysts are predicting that Fitbit will garner a substantial portion of its quarterly sales from the Charge HR device, one of its activity tracking wristbands, due to an increase in production.

Fitbit went public on June 18 when shares opened at $30.40, well above it’s in initial IPO price of $20. Since then, enthusiasm around the company has continued to increase with investors hoping that its strong momentum will be reflected in its upcoming sales, gross margin, and outlook.

This quarter will mark the company’s first earnings as a public company with anticipation building around Fitbit’s ability to meet and potentially exceed market expectations.

Erinn Murphy of Piper Jaffray last rated Fitbit on August 4, reiterating an Overweight rating and with a price target of $52. Murphy remained bullish on the stock emphasizing that “[n]ew product momentum and recently increased manufacturing capacity for Charge HR should drive the Q3 outlook above consensus estimates.” Murphy also predicted an upside to her Q2 sales estimate of $325 million, which is already above the consensus $319.45 million.

When discussing the company’s long-term trajectory, Murphy stated that her “positive view is based largely on FIT’s brand equity as the leader in the wearable space and the opportunity for the company to reach a broad addressable market with its product, both domestically and internationally.”

Erinn Murphy has rated Fitbit a total of two times this year, earning an 100% success rate recommending the stock and a +12.6% average return per recommendation when measured over a one-year horizon and no benchmark.

Out of 11 analysts polled by TipRanks, 7 analysts are bullish on Fitbit and 4 are neutral. The average 12-month price target for Fitbit is $46.50, marking a (-6.42%) potential downside from where the stock is currently trading. On average, the all-analyst consensus for Fitbit is Moderate Buy.

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