Wearables veteran Fitbit (FIT) on Wednesday posted slight improvement in revenue of $394 million from last year’s $392.5 million, just beating Street estimates. Shares reacted to the news positively, sending the stock more than 10% up as high as $5.29 in aftermarket trade from its closing price of $4.73.
However, it saw a loss of $0.01 per share. Adjusted earnings was $0.04 a share on a net loss of only $0.21 million, much lower than last year’s loss of $113.4 million.
Analysts expected a revenue of $381.2 million, 3% short of a year ago generating an adjusted loss of $0.01 a share. Avoiding a double-digit percentage drop on the top line in itself was touted to be a silver lining for the company, but now it has improved it.
Three months ago, Fitbit saw a loss and declining sales for the seven straight quarters in a row. Revenue of Fitbit slipped 15.3% to below $300 million, posting a net loss of $118.3 million or $0.49 per diluted share. Cutting the cycle might now present a good opportunity for Fitbit to get back into the game, especially when the company that is looking to track your health is having trouble keeping itself above the water.
It is true that the once leading maker of fitness bracelets has fallen on hard times lately, especially with the advent of the Apple (AAPL) Watch. Shares have been falling sharply for the third consecutive year, shedding off 92% of their value since hitting its peak after its 2015 IPO.