The health and wellness tracker company Fitbit is looking to release its earnings tomorrow, May 3.  Fitbit is a wearable fitness tracker, it looks like it will bounce back after a huge loss and miss forecasts from its fourth quarter results. They are also releasing a smartwatch anytime this year as pictures of their product surfaces on the internet.

The wearable tech has started this year with a bit of a disappointment with a reduced 2017 revenue expectations and with a corporate reorganization. Fitbit also enters this year with bigger schemes for its watches and smart watches. The company now looks to up its sales through retail partners; it looks for more time to gain a great momentum after a continuous decrease in its stock last year.


Analysts’ Forecast for Fitbit

Analysts are looking at the lowest EPS of $0.28 and highest at $0.19, the company reported similar results in the same time last year with earnings per share of $0.03. For the full 2017 expectations, analysts are looking at $0.60 per share for the current year, with EPS varying from figures of $0.65 to $0.46. Fitbit has an estimated net margin of 4.67% and a return equity of 11.94%.

Some stats from the company includes; market cap of $1.35 billion, cash of $706 million, revenue estimates of $280 million and change from a year-ago revenue of at 45%. The recent quarter gave Fitbit $83 million in costs for channel rebates, seller promotions, and a return to reserve move the inventory in the retail stores that didn’t sell over the holidays.


Can Fitbit’s Revenue Surge?

There is massive doubt on revenue increase for the company; a lot of investors grew wary on last year’s landslides, but looking at the company’s present state, it is able to strengthen and grown its revenue per device with a tremendous 69% since 2012. The incredible run it currently sits on is putting positive notes that Fitbit’s products are going to be a commodity just like Garmin’s GPS trackers.

Another factor to tally is the customer engagement with its products, Fitbit’s CEO James Park said in their last quarter report that its US market has been “saturated” which spells a better market for the company but they still have to manage around the need to grow in the health and fitness tracker category.

Fitbit expects a first-quarter revenue to be at $270 million to $290 million, this means that the company is looking to sell as much as 3.1 million units to 3.3 million to match their target. As CEO James Park said, 2017 would be the company’s “transition” year and if the means aren’t met, then investors are looking to abandon the wearable company.

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