Fitbit - Q4 Earnings
After reporting Q4 results, Fitbit (FIT) is down substantially. In not a huge surprise, the wearables company failed to satisfy the market with 2019 guidance after the stock had a big run up to nearly $7.
- Non-GAAP EPS of $0.14 beats by $0.07
- Revenue of $571.2M (+0.1% Y/Y) beats by $1.85M
- Revenue of $1.52B-$1.58B (1-4% growth, and vs. consensus for $1.57B
- EBITDA of -$30M to break-even.
Based on after-hours trading around $6, the stock has a market cap of ~$1.5 billion with sales estimates of a similar amount of 2019. On top of this figure, Fitbit has a cash balance of $723 million leaving an insanely low Enterprise Value of about 0.5x sales.
My view remains that Fitbit will eventually get a sales boost from a shift to the companies wearables being seen as medical devices. Until that time, load up on the stock below $6.
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Disclosure: Long FIT. Please review the disclaimer page for more details.