On Wednesday, May 1, the Fitbit Q1 earnings were released, which topped both revenue and earnings expectations. Twenty-four laters later, however, FIT stock is down just over 5%. Perhaps this is a one-off or because the San Francisco-based company also reported a mixed outlook for the current period in the first-quarter report.
Here’s what we know.
Fitbit Q1 Earnings Impacting FIT Stock?
Yesterday, Fitbit (NYSE:FIT) reported its first-quarter earnings. In the report, the American company, which provides health and fitness devices, said revenue increased to $272 million in Q1. For perspective, the company saw revenue of $248 million in the same period in 2018. This revenue increase surpassed analyst consensus, especially the FactSet consensus, which projected that the Fitbit Q1 earnings report would highlight revenue of $260 million.
“We saw continued momentum across our business in the first quarter,” said CEO James Park. Aside from revenue increases, the number of Fitbit devices sold in the first quarter increased by 36% to 2.9 million, and tracker device sales increased for the first time in three years on a Y-O-Y basis.
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The Fitbit Q1 earnings beating analyst expectations allowed FIT stock to close yesterday’s session up 1.7%. But trading in the green didn’t last long. It’s unclear if FIT stock is trading down today because of things like the average selling price dropping by 19% in Q1, or because the company reported a net loss of $80 million in Q1. Either way, FIT stock is down around 5% Thursday.
According to Yahoo Finance, at the time of writing, FIT stock is trading at $5.07 on the New York Stock Exchange, which puts the stock down 5.49%. Currently, Fitbit has a market cap of $1.28 billion.
Takeaway
What do you think of the Fitbit Q1 earnings report? Considering it topped revenue and earnings expectations, are you surprised to see FIT stock trading in the red today?
Let us know in the comments below!
Featured image: DepositPhotos © dimarik
