An past version of this story on MarketWatch gave fallacious information on the corporate’s united states of americasales versus international gross sales. The story has been corrected.
Newly public Fitbit Inc. may well be planning on launching new merchandise for the vacation purchasing season. however if it is, it’s no longer telling investors about it.
The San Francisco-primarily based company reported income and revenue that soared previous expectations Wednesday and hosted its first conference call with Wall boulevard. As Fitbit’s match, +three.92% name improved, its shares fell in after-hours buying and selling, as investors discovered that one of the most wearable-tech opponents to Apple Inc. AAPL, +0.sixty six% can also be taking the tech large’s strategy to new products: Mum is the phrase unless launch.
“We received’t free up a product sooner than it is ready,” Fitbit co-founder and Chief government James Park mentioned after one of several questions about the firm’s new product plans.
within the second quarter, Fitbit stated new products made up 78% of its 2nd-quarter income and that moderate selling prices rose to $ 88 from $ sixty three within the 12 months-ago quarter. Its shares were down nearly 15% in after-hours to about $ 40 after mountain climbing to greater than $ 50 for the reason that it went public in mid-June at $ 20 a share.
the company projected a slight sequential drop in third-quarter income, with a forecast of earnings starting from $ 335 million to $ 365 million after 2nd-quarter revenue hit $ 400 million. Fitbit additionally gave guidance for the rest of the year that didn’t embrace revenue from new merchandise, saying its 2015 forecast of earnings of $ 1.6 billion to $ 1.7 billion is according to its present line-up. That forecast remains to be higher than the FactSet consensus for 2015 revenue of $ 1.four billion, however it’ll have now not been sufficient for buyers.
buyers will also be being concerned about the truth that Fitbit is now seeing faster increase outside the U.S.; seventy eight% of income within the quarter got here from the U.S., however international sales grew at a quicker %. as well as, spending is a priority: Fitbit plans to maintain hiring aggressively, proceed to spend closely on research and construction of latest merchandise and raise its promotion spend.
client products companies typically have an immense fourth quarter around the vacation season. traders need to rely on that with Fitbit, but the company will not be going to guarantee it. And the stock is now paying the price for that uncertainty.
This entry passed throughout the Full-text RSS provider – if that is your content and you’re studying it on anyone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.
MarketWatch.com – high stories