Fitbit shares jumped Wednesday in extended trading after the company released better-than-expected second-quarter numbers.
Here’s how Fitbit fared:
- Loss per share: 22 cents, vs. 24 cents forecast by Thomson Reuters.
- Revenue: $299.3 million, vs. $285.4 million forecast by Thomson Reuters.
Analysts had projected quarterly revenue of $285.4 million, or a nearly 20 percent year-over-year sales decline. Fitbit reported a revenue drop of 15 percent.
from the year-ago quarter, the fitness tech company reported which had a loss of 8 cents per share on revenue of $353.3 million.
The stock initially jumped 8 percent in after-hours trading following the report. The shares since pared gains, as well as also were last seen trading more than 3 percent higher.
Fitbit performed better in some regions than others. Its biggest decline was in Europe, the Middle East as well as also Africa, where revenue plummeted 39 percent year over year. from the U.S., revenue dropped 8 percent.
However, the Asia-Pacific market was a bright spot for the company, where revenue increased 66 percent year over year.
For the third quarter, Fitbit said which expects revenue to come in between $370 million as well as also $390 million. Analysts had forecast third-quarter revenue of $377.6 million, according to a Thomson Reuters consensus estimate.
The stock has been up modestly in 2018. from the same period the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq 100 index, has gained more than 13 percent.
Fitbit’s business has started out to pivot toward smartwatches, which made up 55 percent of revenue from the second quarter. Smartwatches also contributed to an increase in its average selling cost. which figure rose 6 percent year over year to $106 per device.
However, Fitbit is usually not leaving its signature trackers behind. Co-founder as well as also CEO James Park said on a call with investors which he expects the second quarter to be the “trough” in terms of tracker demand. He said there is usually potential growth for tracker use among children as well as also from the health-care industry.
“We’re going to continue to invest as well as also innovate in trackers,” he said.
In April, the company announced which which would likely use Google’s Cloud Healthcare API to integrate a patient’s Fitbit data with electronic medical records. The stock saw a temporary bump on the news.