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How to Trade Fitbit's Stock (FIT) Ahead of Earnings

On Tuesday, August 2 nd , Fitbit Inc. (FIT) will release its second quarter earnings results. The company is currently a Zacks Rank #4 (Sell) and shares are down more than 53% year-to-date.

Join David Bartosiak this Tuesday on YouTube at 1pm CST to see his thoughts on Fitbit's past earnings, look at what is currently going on with the company, and he'll give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will look into some potential options trades for investors looking to make a play on Fitbit Inc. ahead of earnings.

Fitbit Inc. in Focus

Fitbit Inc. manufactures and markets wearable fitness-tracking devices. The company's product line consists of Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, Fitbit Surge, and Aria. It also offers accessories which include bands and clips, charging cables, and Fitbit apparel. Fitbit Inc. is headquartered in San Francisco, California.

Fitbit Inc. is coming off of an earnings beat of $0.07 last quarter, which represented an earnings surprise of 175%. The company has been on a streak of beating earnings estimates, posting higher-than-expected EPS figures in each of its last 4 quarters. Fitbit Inc. has posted an average earnings surprise of 167.86% over the last 4 quarters.

FITBIT INC Price, Consensus and EPS Surprise

FITBIT INC Price, Consensus and EPS Surprise | FITBIT INC Quote

Heading into this earnings report, our Most Accurate Estimate for Fitbit is $0.04, which is in-line with the Zacks Consensus Estimate.

While sales for Fitbit have been robust in the first half of the year, negative analyst earnings estimate activity, increased levels of spending, poor user engagement, and threat of competition has battered the stock in 2016, despite a major beat on earnings and revenue estimates in Q1. Last quarter, product innovation, expansion of global distribution, network effects of the Fibit community and prudent investments were main growth drivers. For the second quarter, the company planned heavy investments in research and development, sales and marketing, and consumer engagement features.

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Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He's also the host of a light-hearted, Millennial-minded series of videos called "Trending Stocks."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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