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Fitbit 2Q18 results +2
Fitbit has reported on its second quarter:
- a loss of 22 cents per share beats by 2 cents
- on revenue of $299M, which beats by $14M
- the company sold 2.7M devices with an ASP of $106, and 59% of revenue came from Ionic, Versa, Ace, Aria 2 and Flyer.
- 3Q18 is guided to $380+/-10M in sales, which beats by $2M
- management expects that to result in EPS from -2 to +1 cents, beating by 1.5 cents at the mid-point
- FY2018 guidance for $1.5b in sales matches analyst estimates
Although this is in-line with my broadest expectations, I thought they'd do better. In particular, Fitbit is getting some traction in America, especially women, and losing the rest of the world, much as I'd expected. This is a good report, and FIT shares deserve to recover some of their recent losses, maybe even approaching $8.
In my view, though, it's not nearly enough to change the
long-term outlook that I've already detailed. More innovative
competition is emerging and that tide is set to swell
further. In light of that, I will listen to the conference call,
but doubt there will be a good reason to write any further.