Fitbit Inc (NYSE: FIT)
Fitbit shares rallied more than 10% to change hands at $5.22 in post-market trading on Wednesday. The gain after the fitness tracker maker reported third-quarter financial results that beat on both the top and bottom lines.
San Francisco, CA-based Fitbit also released a higher than expected fourth-quarter earnings forecast. Shares of the company have fallen 17% since the beginning of the year through Wednesday.
FIT Earnings & Outlook
The company posted a third-quarter net loss of $2.1 million, versus $113.4 million in the year-ago period. On a per-share basis, the company earned 1 cent per share, compared with 48 cents per share a year earlier. Adjusted for one-time items, earnings were 4 cents per share.
The gadget maker generated net sales of $394 million during the quarter, compared with $392.5 million a year ago. Analysts were expecting the company to announce a loss of a penny per share on revenue of $381.2 million, according to Bloomberg figures.
Device sales rose to 3.5 million from 2.7 million in the third quarter of last year. A growing mix of smartwatches pushed the average selling price per device to $108, which is an increase of 3% from the year-ago period.
Looking ahead, the company forecasts full-year revenue of $1.5 billion, slightly ahead of expectations of $1.49 billion.
CEO Comments
“We have been incredibly focused on executing our transition plan and as a result, saw a return to profitability this quarter, and are re-affirming our full year revenue guidance of $1.5 billion. We succeeded in growing our healthcare business by 26% and diversifying our revenue to compete in the changing wearables category and saw sequential growth in both tracker and smartwatch devices,” commented James Park, co-founder and CEO.
“We are now the number two player in the smartwatch space in the U.S. – a category we just entered with zero share only fourteen months ago. We also launched our most advanced tracker yet, Fitbit Charge 3, which is blurring the lines between trackers and smartwatches and is already one of the top selling devices in the U.S.”
Company Profile
Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness.
The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributors; and Fitbit.com, an online store, as well as directly to consumers. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California. – Yahoo Finance