Fitbit to report earnings after the bell

Fitbit is expected to report second-quarter results after the close Wednesday.

Here is what Wall Street expects:

  • Loss per share: 24 cents, forecast by Thomson Reuters.
  • Revenue: $285.4 million, forecast by Thomson Reuters.

The stock has been flat in 2018, gaining about 2 percent. In the same period, the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq 100 index, has gained more than 13 percent.

Fitbit shares were recently seen trading around $6 a share, off its 52-week intraday high of $7.79 and well below its all-time high of $51.90.

Analysts projected second-quarter revenue of $285.4 million, or a 20 percent year-over-year sales decline.

Fitbit previously said its second-quarter results to be hit by reduced demand for trackers, which have far fewer features than a smartwatch. Fitbit also has a line of smartwatches, but it makes up a smaller percentage of the company’s revenue stream.

The effect of lower demand is compounded by increased competition from smartwatch rivals like Apple, which reported strong earnings Tuesday.

“Apple Watch delivered record June quarter performance with growth in the mid 40 percent range,” Apple CEO Tim Cook said on a call to investors on Tuesday.

However, Fitbit is making moves to stay relevant. In April, the company announced that it would use Google‘s Cloud Healthcare API to integrate a patient’s Fitbit data with electronic medical records. The stock saw a temporary bump on the news.

This is breaking news. Please check back for updates.

Free America Network Articles

Leave a Comment