Zepp Health Corporation
Subdued Q1 Outlook / Trading Below Liquid Assets
Published: 3/20/2024
Author: Sid Rajeev, B.Tech, CFA, MBA

Sector: Technology | Industry: Consumer Electronics
Ticker Symbols:
ZEPP - NYSE 🔹
Highlights
In Q4-2023, Zepp ranked sixth in the global smartwatch market based on unit sales, trailing behind Apple (NASDAQ: AAPL), Garmin (NYSE: GRMN), Samsung (KOSE: A005930), Huawei, and Fitbit (Google/NASDAQ: GOOGL)
In 2023, revenue was down 40% YoY, narrowly missing our estimate by 0.5%. Although EPS improved YoY, it fell short of our estimate by 19%.
Revenue declined due to the company halting production of several low-margin products. This strategic move paid off as gross profit for self-branded units increased by 18% YoY, despite a 24% YoY de