Fitbit Earnings for Q3 2015 (NYSE: FIT)

4:30 p.m. UPDATE: The Fitbit earnings report was released after the bell today, and the company smashed top and bottom line expectations. The wearable tech giant reported earnings per share (EPS) of $0.24 on revenue of $409 million. Analysts projected an EPS of $0.10 on revenue of $351 million.

These numbers compare to $0.21 per share on revenue of $400.4 million in Q2 2015.

Previous story follows…

fitbit earningsFitbit earnings for Q3 2015 come out after the closing bell today (Monday), and investors are wondering if Fitbit's financials will suffer from increased competition from Apple Inc. (Nasdaq: AAPL).

In Fitbit Inc.'s (NYSE: FIT) second-ever earnings report, analysts expect it to earn $0.10 per share on revenue of $351 million. That would mark a 52.4% decline in earnings per share (EPS) from the second quarter and a 12.3% drop in revenue.

Despite the projected drop, Fitbit could beat expectations as it maintains market dominance over the Apple Watch.

A recent Morgan Stanley (NYSE: MS) survey found the consumer purchase intention (CPI) - a person's favorability toward competing tech devices - of Fitbit products rose from 15% in May to 17% in July. Meanwhile, CPI for the Apple Watch declined 33% over the period to 20%.

Bloomberg also reported Fitbit products outsold Apple Watches by a wide margin in the second quarter. Fitbit sold 4.5 million devices between April and June, up 162% from the year-ago period. Apple only sold 3.6 million watches during the period.

But high sales figures may not be enough to boost the Fitbit stock price. After all, shares fell as much as 15% after the last Fitbit earnings report despite smashing EPS estimates by 162%.

With all of these mixed expectations ahead of Fitbit earnings, investors are wondering whether or not to buy FIT stock now...

How to Play FIT Stock After Fitbit Earnings

There's no doubt Fitbit demonstrates all the qualities of a strong investment. The company controls 85% of the U.S. wearable tech market. That means it's on track for exponential growth as the wearables market expands from 45.7 million devices in 2014 to 126.1 million in 2019.

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

But investors shouldn't buy Fitbit stock for at least two more quarters. According to Money Morning Chief Investment Strategist Keith Fitz-Gerald, waiting for multiple earnings reports to come out is the best way to let a company prove it merits your money.

While Fitbit is already profitable, you want to make sure the company isn't becoming less profitable. The only way to figure that out is to see if Fitbit's top and bottom line numbers grow over multiple quarters.

Not to mention Fitbit needs to prove it can retain its dominant position by outselling competitors like the Apple Watch and Jawbone.

"For them to succeed, they'll have to be agile and execute a plan to attack their niche market," Money Morning Defense & Tech Specialist Michael A. Robinson said after the Fitbit IPO in June. "They need to figure out how long they can sustain a competitive advantage."

Alex McGuire is an associate editor for Money Morning. Follow him on Twitter for all of the biggest Fitbit news.

These Tech Companies Are Defying Wall Street... There are a few tech stocks that consistently beat the overall market, no matter how volatile it gets. In fact, we found three that have smashed the Nasdaq by at least 200%. And they'll continue to beat the overall market for the next three years...