Owlet (NYSE:OWLT) Issues Earnings Results

Owlet (NYSE:OWLT) issued its quarterly earnings results on Tuesday. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.29, FiscalAI reports. The firm had revenue of $33.90 million for the quarter, compared to analysts’ expectations 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 OWLT opened at $5.46 on Wednesday. The firm has a market cap of $158.64 million, a P/E ratio of -1.78 and a beta of 1.85. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.71 and a quick ratio of 1.33. Owlet has a 1 year low of $4.19 and a 1 year high of $16.94. The company has a 50 day simple moving average of $5.36 and a two-hundred day simple moving average of $6.80.

Hedge Funds Weigh In On Owlet

Institutional investors have recently bought and sold shares of the stock. Eclipse Operations LLC purchased a new stake in Owlet in the 4th quarter worth $124,677,000. AWM Investment Company Inc. bought a new stake in shares of Owlet in the fourth quarter worth about $28,304,000. Vanguard Group Inc. lifted its position in shares of Owlet by 86.3% in the third quarter. Vanguard Group Inc. now owns 389,840 shares of the company’s stock worth $3,302,000 after buying an additional 180,619 shares in the last quarter. Bleichroeder LP boosted its stake 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 buying an additional 40,000 shares during the last quarter. Finally, Renaissance Technologies LLC increased its stake in Owlet by 70.5% in the 4th quarter. Renaissance Technologies LLC now owns 286,409 shares of the company’s stock worth $4,637,000 after acquiring an additional 118,386 shares during the last quarter. 72.60% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

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

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.