Categories Earnings, Technology

Fitbit (FIT) swings to profit in Q1 but misses estimates

Fitbit, Inc. (NYSE: FIT) swung to a profit in the first quarter of 2020 from a loss last year, helped by a tax benefit from net operating loss carrybacks. The bottom-line was wider than the analysts’ expectations while the top-line missed consensus estimates.

The top-line dropped by 31% due to weakness in pricing and devices sold. The company experienced weakness across the US and international. The company sold 2.2 million devices, down 26% year-over-year, due to the introduction of one new product in the latest quarter compared to three new products last year. The average selling price decreased by 11% year-over-year to $81 per device.

Fitbit (FIT) Q1 2020 earnings

Fitbit was negatively impacted by the outbreak of COVID-19 during the quarter, which caused disruptions in the development, manufacture, shipment, and sales of its products. The company expects the pandemic and associated mitigation efforts to continue to have a significant negative impact on its results in 2020, including liquidity, although nature and extent will depend on future developments that are evolving and highly uncertain.

On January 3, Fitbit stockholders approved the merger transaction with Google. The stockholders will receive $7.35 per share in cash, valuing the company at a fully diluted equity value of about $2.1 billion. Fitbit and Google are expected to secure the necessary regulatory approvals and close the transaction in 2020. Due to the pending acquisition by Google, Fitbit does not plan to host an earnings conference call nor provide next-quarter or full-year guidance.

Past Performance

Most Popular

Kin Insurance’s strategy is focused on growing in catastrophe-exposed states: CEO Sean Harper

Kin Insurance is a leading insurance technology company specialized in high-risk residential areas. The direct-to-consumer business model and use of advanced technology allow the company to offer affordable pricing without

Infographic: Key highlights from Best Buy (BBY) Q1 2023 earnings results

Best Buy Co., Inc. (NYSE: BBY) reported first quarter 2023 earnings results today. Enterprise revenue dropped to $10.6 billion from $11.6 billion in the year-ago period. Comparable sales were down

AutoZone (AZO) Q3 Earnings: Key financials and quarterly highlights

AutoZone, Inc. (NYSE: AZO) reported third quarter 2022 earnings results today. Net sales increased 5.9% year-over-year to $3.9 billion. Domestic same-store sales increased 2.6%. Net income decreased 0.6% to $592.6 million, while

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top