Fitbit tops Street 2Q forecasts and its shares jump
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Shares in Fitbit Inc. jumped in after-hours trading Tuesday after the wearable device maker posted second-quarter results that topped Wall Street expectations.
The San Francisco-based company reported second-quarter earnings of $6.3 million, or 3 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 12 cents per share.
The average estimate of 17 analysts surveyed by Zacks Investment Research was for adjusted earnings of 11 cents per share.
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Fitbit posted revenue of $586.5 million in the period, which also beat Street forecasts. Ten analysts surveyed by Zacks expected $580.2 million.
For the current quarter ending in October, Fitbit expects its adjusted per-share earnings to range from 17 cents to 19 cents. The company said it expects revenue in the range of $490 million to $510 million for the fiscal third quarter. Analysts are expecting earnings of 18 cents a share on revenue of $497 million, according to FactSet.
Fitbit expects adjusted full-year earnings in the range of $1.12 to $1.24 per share, with revenue ranging from $2.5 billion to $2.6 billion. Wall Street is looking for earnings of $1.17 a share on $2.58 billion in revenue.
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Fitbit shares have dropped 56 percent since the beginning of the year. They closed Tuesday at $13.16, a decrease of 72 percent in the last 12 months.
In after-hours trading following the release of the earnings report, they rose 80 cents, or 6 percent, to $13.96.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FIT at http://www.zacks.com/ap/FIT
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Keywords: Fitbit, Earnings Report