Since Fitbit Inc. (NYSE: FIT) released its second-quarter financial results after the markets closed on Wednesday, shares bounced off an all-time low, contributing to the rally of the broad markets. However, it could be argued that it was about time for this stock to take a step forward.
The company said that it had a net loss of $0.08 per share and $353.3 million in revenue, which compared with consensus estimates of a net loss of $0.15 per share and revenue of $339.2 million. In the second quarter of last year, the company posted earnings of $0.12 per share and $586.5 million in revenue.
In terms of its segments, U.S. revenue fell 55% to $199 million, while EMEA revenue grew 9% to $109 million and APAC revenue grew 46% to $21 million.
During this quarter, Fitbit sold 3.4 million devices, which was up 14% sequentially but down 40% from the same period last year.
Average selling price increased 4% sequentially from the first quarter of 2017 and 2% from the second quarter of 2016.
Fitbit gave its outlook for the third quarter as a net loss of $0.05 to $0.02 per share and between $380 million and $400 million in revenue. The consensus estimate call for a net loss of $0.05 per share and $393.1 million in revenue for the coming quarter.
James Park, CEO and co-founder, commented:
Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales. We are executing according to our transition plan and have increased confidence in achieving our full year results. 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.
Shares of Fitbit were last seen up more than 13% at $5.75 midday Thursday, with a consensus analyst price target of $7.00 and a 52-week range of $4.90 to $17.18.