Date
24 November 2017
Fitbit has come under pressure in a saturating market for wearables and as new rivals such as Apple Inc., Samsung Electronics and Xiaomi Inc.  have also stepped in. Photo: Reuters
Fitbit has come under pressure in a saturating market for wearables and as new rivals such as Apple Inc., Samsung Electronics and Xiaomi Inc. have also stepped in. Photo: Reuters

Fitbit reports better than expected quarterly revenue

Wearable device maker Fitbit Inc. forecast a better-than-expected bottom line for the holiday quarter, as the company reaps the benefits of its latest launches, Reuters reports.

New products, including the Ionic smartwatch and Fitbit Alta HR, represented 32 percent of total revenue in the third quarter ended Sept. 30.

“There is a change in the market with the demand for smartwatches growing and we see huge opportunity there,” chief executive James Park told Reuters.

On an adjusted basis, Fitbit forecast key holiday-quarter earnings between a loss of 3 cents to a profit of 1 cent per share. Analysts were expecting a loss of 4 cents per share, according to Thomson Reuters.

The company sold 3.6 million devices in the reported quarter, below analysts’ estimate of 3.80 million, according to financial data analytics firm FactSet.

The San Francisco, California-based company has come under pressure in a saturating market for wearables and as new rivals such as Apple Inc., Samsung Electronics, Xiaomi Inc. and Garmin Ltd. have also stepped in.

Fitbit reported a net loss of US$113.4 million, or 48 cents per share, in the quarter, compared to a profit of $26.1 million, or 11 cents per share, a year earlier.

Excluding items, the company lost 1 cent per share. Revenue fell 22.1 percent to US$392.5 million.

Analysts on average had expected the company to report a loss of 3 cents per share on revenue of $391.7 million.

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