Shares of Fitbit spike after better-than-expected results
Source: CNBC Earnings
Shares of Fitbit spiked after the company reported better-than-expected first-quarter results on Wednesday after the bell.
The stock was up more than 7 percent in extended trading.
- Loss per share: 15 cents vs.18 cents expected by Thomson Reuters estimate
- Revenue: $299 million, versus $280.8 million expected by analysts
The California-based company posted a loss of 15 cents per share on revenue of $299 million, down from $505.4 million the year before. A consensus of analysts polled by Thomson Reuters expected a loss of 18 cents per share on revenue of $280.8 million.
“Underlying consumer demand has been better than our reported results in North America as we work down channel inventory levels, giving us increased confidence that we will enter the second half of 2017 with a relatively clean channel,” CEO James Park said in a press release on Wednesday.
“While 2017 remains a transition year, we have executed on our restructuring plan,” Park added.
The company also said second-quarter guidance forecasts revenue between $330 million and $350 million, reaffirming their full year 2017 guidance of between $1.5 billion and $1.7 billion.
Fitbit had been investigating claims that one of their devices gave a Wisconsin woman second-degree burns on her wrist but determined that “external forces caused the damage to the device,” according to a Fitbit spokesperson.
The company has not received any other complaints along these lines and says the device “did not malfunction.”
Data from the wearable fitness device maker also recently aided police in charging a man with murder.
Shares of Fitbit were down about 67 percent in the past 12 months as of Wednesday’s close.
Fitbit shares 5-day performance