Fitbit is tumbling
The maker of fitness trackers posted record quarterly revenues of $400.4 million, beating the forecast for $319 million according to Bloomberg. Adjusted earnings per share came in at $0.21, versus estimates for $0.08.
International sales surged 250% year-over-year in the quarter, and overall, 4.5 million devices were sold.
However, the 47% gross margin missed estimates for 48%.
Shares plunged as much as 10% in after-hours trading. The stock hit an all-time high during the session Wednesday and closed up 4% at $51.74.
The stock has rallied 74% since the IPO in June, when it opened 52% above its initial offering price.
In the earnings statement, CEO James Park said: "Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit. In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market."
The company forecasts revenues of between $1.6 billion and $1.7 billion for the full year.
Shares were all over the place after the market close, falling as much as 9% after closing up 4% at $51.68. The stock is up 74% since the IPO in June, when it opened 52% above its initial offering price.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh