Fitbit Inc. (NYSE: FIT) reported first-quarter financial results after the markets closed on Wednesday. The company had $0.10 in earnings per share (EPS) on $505.4 million in revenue compared to consensus estimates from Thomson Reuters that called for $0.03 in EPS on $443.24 million in revenue. Last year’s second quarter had $0.27 in EPS on $336.8 million in revenue.
During the quarter the company sold 4.8 million connected health and fitness devices, compared to 3.9 million in the same period from last year.
The U.S. comprised 70% of this quarter’s revenue followed by EMEA 15%, APAC 11%, and Other Americas 4%. Revenue from new products Fitbit Blaze and Alta comprised 47% of revenues.
The company also announced its intent to enter into a strategic partnership with Alibaba, largest retailer in the world, to reach millions of Chinese consumers through partnership with Alibaba’s TMall platform.
In terms of guidance for the second quarter, Fitbit expects EPS to be in the range of $0.08 to $0.11 and for revenues to be in the range of $565 million to $585 million. Consensus estimates called for $0.26 in EPS on $532.79 million in revenue in the second quarter.
James Park, Fitbit co-founder and CEO, commented:
The strong growth and defensibility of our business continues to be powered by product innovation, the network effects of our community, our expanding global distribution, and investment in our brand. Based on the first quarter’s performance and momentum, we are confident about the remainder of the year, which is reflected in our increased guidance.
On the books, cash, cash equivalents, and marketable securities totaled $792 million at the end of the quarter compared to $664 million at the end of 2015.
Shares of Fitbit closed Wednesday down 0.5% at $17.10, with a consensus analyst price target of $23.33 and a 52-week trading range of $11.91 to $51.90. Following the release of the earnings report, the stock was initially down 9% at $15.60 in the after-hours trading session.
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