Despite a 40% YOY decline in devices sold, Fitbit (FIT) managed to exceeded analyst expectations during the 2nd Quarter. FIT reported sales of $353 million (compared to estimates of $341 million) and losses of $.08/share (compared to estimates of $.15). The once high-flying fitness band company is hoping a pivot to becoming a digital health company, focused on corporate wellness, will change its fortunes. CEO James Park announced the company’s new smartwatch will be released in time for holiday shopping, and is expected to drive second half sales.
Fitbit Tops Sales Estimates on Renewed Demand for Fitness Bands
Long-Short:The beauty of low expectations. There’s not much room downward left for this stock.
Fan Marino: The FIT stock has dropped 90% in 2 years. A pivot is in order, but I don’t see a need/market for the smart watch.