Categories AlphaGraphs, Earnings, Technology

Fitbit swings to Q4 profit amid strong device sales; stock falls on weak guidance

Wearable maker Fitbit (FIT) reported a net profit for the fourth quarter compared to a loss in the prior-year period. Though the results came in above analysts’ forecast, the company’s stock dropped about 12% during the extended trading hours Wednesday after its outlook fell short of expectations.

Fitbit Q4 results beat estimates
Fitbit Q4 2018 earnings infographic

On an adjusted basis, Fitbit reported earnings of $0.14 per share for the December quarter on revenues of $571.2 million, which is broadly flat year-over-year. The results topped Wall Street estimates. A year earlier, it had posted a loss of $0.02 per share. Unadjusted profit was $15.4 million or $0.06 per share, compared to a loss of $45.5 million or $0.19 per share in the fourth quarter of 2017.

The turnaround was driven by a 3% increase in device sales to 5.6 million units, on an average selling price of $100 per device

The turnaround was driven by a 3% increase in device sales to 5.6 million units, on an average selling price of $100 per device, down 2%. The sales growth was achieved mainly by adding tracking-device Fitbit Charge3 to the product mix. New devices – Fitbit Versa, Fitbit Ace, and Fitbit Charge3 – accounted for about 79% of total revenue during the three-month period.

“In 2019 we’re committed to offering more affordable devices with engaging health and fitness features, making the health benefits of being on Fitbit even more accessible. We expect our Fitbit Health Solutions revenue growth to accelerate to approximately $100 million and to grow non-device consumer revenue,” said CEO James Park.

Also see: Apple Q1 revenue drops but tops estimate

In an indication that the recovery seen in the fourth quarter might not be sustained, the management currently forecasts a net loss in the range of $24 per share to $22 per share for the March quarter, when revenues are expected to grow 1-8% to the range of $250 million to $268 million.

Full-year 2019 revenues are estimated between $1.52 billion and $1.58 billion, up 1-4% compared to last year. Though device sales are expected to grow during the remainder of the year, the average selling price is seen falling further.

Fitbit’s shares gained about 22% so far this year, after witnessing significant volatility throughout 2018. The stock closed Wednesday’s regular session higher but fell sharply in the after-hours following the earnings report.


Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Citigroup (C) reports higher revenue and profit for Q2 2024; earnings beat

Banking behemoth Citigroup Inc. (NYSE: C) Friday reported an increase in revenue and net income for the second quarter of 2024. Earnings came in above analysts’ estimates. Net profit for

Wells Fargo (WFC) Q2 2024 Earnings: Key financials and quarterly highlights

Wells Fargo & Company (NYSE: WFC) reported its second quarter 2024 earnings results today. Total revenue rose 1% year-over-year to $20.7 billion. Net income dropped 1% to $4.9 billion while

JPM Earnings: All you need to know about JPMorgan’s Q2 2024 earnings results

JPMorgan Chase & Co. (NYSE: JPM) reported second quarter 2024 earnings results today. Reported revenue increased 22% year-over-year to $50.2 billion. Managed revenue rose 20% to $51 billion. Net income

Add Comment
Viewing Highlight