Owlet (NYSE:OWLT) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Owlet (NYSE:OWLT) issued its earnings results on Tuesday. The company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.04, Zacks reports. The business had revenue of $33.90 million for the quarter, compared to the consensus estimate of $31.71 million.

Here are the key takeaways from Owlet’s conference call:

• Record Q2 results included revenue of $33.9 million, up 29.9% year over year, while adjusted EBITDA excluding the tariff refund reached a record $2.9 million.
• Owlet360 momentum continued, with 130,000 paying subscribers, $3.2 million in subscription revenue, and Dream Sock subscription penetration rising to 36% in the U.S.; web-based checkout and point-of-purchase enrollment could improve conversion and subscription margins over time.
• International revenue increased 214% year over year to $5.7 million, while U.S. sell-through excluding Prime Day rose 20%; management also expects Amazon’s FDA-clearance enforcement for vital-sign monitors to provide a longer-term competitive advantage.
• Management expects Q3 revenue to decline sequentially and year over year because of aggressive competitor discounting ahead of Amazon’s August 10 deadline and a difficult comparison with last year’s product launches; broader promotional events also indicate more cautious consumer spending.
• Full-year revenue guidance was reaffirmed at $118 million-$122 million, while adjusted EBITDA guidance increased to $10.75 million-$12.75 million and gross-margin guidance to 53%-55%, with the upgrades driven entirely by one-time tariff refunds rather than improved underlying expectations.

Owlet Stock Performance

Shares of OWLT opened at $5.72 on Thursday. The company has a market capitalization of $166.22 million, a PE ratio of -7.63 and a beta of 1.85. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.33 and a current ratio of 1.71. The company’s 50 day moving average price is $5.38 and its 200 day moving average price is $6.75. Owlet has a 52 week low of $4.19 and a 52 week high of $16.94.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of OWLT. Eclipse Operations LLC bought a new position in Owlet during the fourth quarter valued at about $124,677,000. AWM Investment Company Inc. bought a new stake in shares of Owlet during the 4th quarter worth $28,304,000. Vanguard Group Inc. boosted its holdings in Owlet by 86.3% during the third quarter. Vanguard Group Inc. now owns 389,840 shares of the company’s stock valued at $3,302,000 after acquiring an additional 180,619 shares during the period. Bleichroeder LP boosted its holdings in Owlet by 14.8% during the fourth quarter. Bleichroeder LP now owns 310,000 shares of the company’s stock valued at $5,019,000 after acquiring an additional 40,000 shares during the period. Finally, Renaissance Technologies LLC grew its position in shares of Owlet by 70.5% in the fourth quarter. Renaissance Technologies LLC now owns 286,409 shares of the company’s stock valued at $4,637,000 after purchasing an additional 118,386 shares during the last quarter. Institutional investors and hedge funds own 72.60% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts recently issued reports on OWLT shares. Wall Street Zen upgraded Owlet from a “strong sell” rating to a “sell” rating in a report on Sunday, May 10th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Owlet in a research note on Friday, July 31st. Finally, TD Cowen restated a “buy” rating and set a $10.00 price target (down from $13.00) on shares of Owlet in a report on Monday, June 22nd. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Owlet presently has a consensus rating of “Hold” and an average target price of $15.00.

Owlet Company Profile

Owlet Baby Care, Inc is a consumer health technology company specializing in the design and manufacture of smart baby monitoring products. The company’s flagship device, the Owlet Smart Sock, is a wearable monitor that tracks a newborn’s heart rate and oxygen saturation levels and transmits real-time data to a mobile app. Owlet has since expanded its product suite to include the Owlet Cam, an HD video monitor with audio and motion alerts, and the Dream Sock, a non-wearable device that collects sleep metrics to help parents understand and improve their baby’s rest patterns.

Founded in 2013 by engineer and father Kurt Workman, Owlet is headquartered in Lehi, Utah.