Owlet (NYSE:OWLT) Announces Quarterly Earnings Results

Owlet (NYSE:OWLT) released its quarterly earnings results on Tuesday. The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.29, FiscalAI reports. The company had revenue of $33.90 million during the quarter, compared to analyst estimates 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 Trading Up 0.7%

Shares of Owlet stock traded up $0.04 during trading hours on Tuesday, reaching $5.46. 439,753 shares of the company’s stock were exchanged, compared to its average volume of 260,424. Owlet has a 52-week low of $4.19 and a 52-week high of $16.94. The firm has a market capitalization of $158.64 million, a price-to-earnings ratio of -1.78 and a beta of 1.85. The company has a fifty day moving average of $5.36 and a 200-day moving average of $6.86. The company has a current ratio of 1.71, a quick ratio of 1.33 and a debt-to-equity ratio of 0.09.

Wall Street Analyst Weigh In

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

Institutional Investors Weigh In On Owlet

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Occudo Quantitative Strategies LP acquired a new position in Owlet in the fourth quarter valued at $276,000. Millennium Management LLC acquired a new stake in Owlet in the 4th quarter worth about $591,000. Engineers Gate Manager LP purchased a new stake in Owlet in the 4th quarter valued at about $246,000. Bridgeway Capital Management LLC grew its holdings in Owlet by 182.2% in the 4th quarter. Bridgeway Capital Management LLC now owns 63,678 shares of the company’s stock valued at $1,031,000 after buying an additional 41,115 shares during the period. Finally, Schonfeld Strategic Advisors LLC acquired a new position in shares of Owlet during the 4th quarter valued at about $283,000. Hedge funds and other institutional investors own 72.60% of the company’s stock.

About Owlet

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.