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Retail checks by Morgan Stanley showed good news for Fitbit ( FIT ), bad news for GoPro ( GPRO ) and mixed news for Garmin ( GRMN ). Fitbit’s new Blaze smart fitness watch and Alta fitness wristband appear to be selling well and could drive upside to Fitbit’s Q1 earnings and Q2 guidance, Morgan Stanley analyst Katy Huberty said in a research report Monday. “Our checks indicate demand for Blaze and Alta were ahead of expectations, and retailers are already putting in reorders for the Blaze, which shipped earlier than the Alta,” Huberty said. Fitbit reported March 31 that it had shipped more than 1 million units each of the Blaze and Alta within their first month of availability. “We expect management will remain conservative on guidance but still expect Q2 estimates to move higher post-earnings,” she said. Meanwhile, retail checks for GoPro action cameras point to year-over-year declines in sell-through, with retailers still working down channel inventory. “Our conversations suggest enthusiasm for the product category continues to wane, and the upcoming Hero 5 is unlikely to recapture retailer shelf space lost during the recent spring reset,” Huberty said. She is cautious on GoPro’s upcoming quadcopter “flying camera” product, though the market appears to be picking up. Competitors are expected to launch lower-priced drones, hurting sales of GoPro’s premium product. Fitbit rival Garmin is retaining market share in high-end sports watches, but it appears to be losing share in activity trackers, Huberty said. In afternoon trading on the stock market today , Fitbit stock was up 5.5%, above 15, while GoPro was down 3%, near 12, and Garmin stock was up 1.5%, above 40. Scalper1 News
Scalper1 News