{"id":38350,"date":"2017-08-03T06:00:29","date_gmt":"2017-08-03T06:00:29","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=38350"},"modified":"2017-08-03T06:00:29","modified_gmt":"2017-08-03T06:00:29","slug":"fitbit-tops-revenue-estimates-expects-smartwatch-for-holiday-season","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/fitbit-tops-revenue-estimates-expects-smartwatch-for-holiday-season.html","title":{"rendered":"Fitbit tops revenue estimates, expects smartwatch for holiday season"},"content":{"rendered":"

Fitbit tops revenue estimates, expects smartwatch for holiday season<\/span><\/strong><\/span><\/h2>\n

Wearable device maker Fitbit Inc reported a smaller-than-expected drop in quarterly revenue on Wednesday, and said it was on track to launch its much-awaited smartwatch for the holiday season.<\/span><\/p>\n

Shares of Fitbit – which sells colorful wristbands that monitor heartrate, tracks sleeping patterns, steps count and calories – were up 4.7 percent at $5.31 in extended trading.<\/span><\/p>\n

Once the market leader in wearables, Fitbit has recently struggled with fierce competition from companies such as Apple Inc and China’s Xiaomi Inc.<\/span><\/p>\n

The company has blamed a shift among consumers toward higher feature devices and smartwatches for the declines in revenue.<\/span><\/p>\n

The fitness-focused Apple Watch, with which Fitbit’s devices compete, reported a 50 percent surge in sales in the iPhone maker’s latest quarter.<\/span><\/p>\n

Fitbit is stepping up efforts to reduce operating costs as it looks to turn around the business and has called 2017 “a transition year”.<\/span><\/p>\n

The company is on track to execute that plan, Chief Executive James Park said on a post-earnings call.<\/span><\/p>\n

The fitness-band maker’s revenue fell nearly 40 percent to $353.3 million in the second quarter ended July 1, but came in above analysts’ estimate of $341.6 million.<\/span><\/p>\n

However, Fitbit slightly narrowed its full-year revenue forecast to a range of $1.55 billion to $1.7 billion, from $1.5 billion to $1.7 billion it forecast previously.<\/span><\/p>\n

“The second-quarter results give us more confidence that Fitbit can actually achieve its full-year guidance,” said Wedbush analyst Alicia Reese, adding that an important factor would be the upcoming smartwatch.<\/span><\/p>\n

For the second quarter, Fitbit reported a loss of $58.2 million, or 25 cents per share, compared with a profit of $6.3 million, or 3 cents per share, a year earlier.<\/span><\/p>\n

Excluding items, the company posted a loss of 8 cents per share, much smaller than analysts’ average estimate of 15 cents.<\/span><\/p>\n

The company’s shares had fallen about 31 percent this year through Wednesday.<\/span><\/p>\n

source:-https:\/\/www.reuters.com\/article\/us-fitbit-results-idUSKBN1AI2OU<\/span><\/p>\n

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