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Fitbit (FIT) Beats Q2 Earnings Estimates, Sold 3.4 Million Devices

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Fitbit, Inc. (FIT - Free Report) just released its second quarter fiscal 2017 earnings results, posting earnings of a loss of $0.18 per share and revenue of $353.3 million. Currently, Fitbit has a Zacks Rank #3 (Hold), and it is up 4.54% to $5.30 in after-hours trading shortly after its earnings report was released.

Fitbit:                                        

Beat earnings estimates.The company posted adjusted earnings of -$0.18 cents per share, after excluding $0.07 for non-recurring items, beating our Zacks Consensus Estimate of -$0.22.

Beat revenue estimates.The company saw revenue figures of $353.3 million, beating our estimate of $339.17 million. Revenue decreased year-over-year by about 40%. New products introduced in the last twelve months represented 81% of revenue. 

Fitbit sold 3.4 million devices, up 14% sequentially from the first quarter of 2017, but down 40% year-over-year.

38% of product activations came from customers who made repeat purchases. Of the repeat purchases, 39% came from customers who were inactive for 90 days or greater.

The Fitbit app was the number one downloaded health and fitness applications on the iOS and Android platforms, based on U.S. downloads.

Looking ahead, Fitbit expects revenue in the range of $380 to $400 million for the third quarter. It also expects earnings in the range of -$0.05 to -$0.02.

“Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales,” said co-founder and CEO James Park. “Our smartwatch, which we believe will deliver the best health and fitness experience in the category, is on track for delivery ahead of the holiday season and will drive a strong second half of the year.”

“In the long term, we are confident in our vision for the future and are uniquely positioned to succeed by leveraging our brand, community, and data to drive positive health outcomes.”

Here’s a graph that looks at Fitbit’s price, consensus, and EPS surprise:

Fitbit, Inc. Price, Consensus and EPS Surprise

Fitbit, Inc. Price, Consensus and EPS Surprise | Fitbit, Inc. Quote

Fitbit Inc. manufactures and markets wearable fitness-tracking devices. The Company's product consists of Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, Fitbit Surge and Aria. It also offers accessories which include bands and clips, charging cables and Fitbit apparel. Fitbit Inc. is headquartered in San Francisco, California.

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