Tuesday 17 September 2019

About face: Fitbit stock jumps after it reports a surprise profit

Fitbit
Fitbit

WEARABLE device maker Fitbit reported a surprise third-quarter adjusted profit on Wednesday, driven by its fast-growing smartwatch business that contributed to nearly half of its total revenue.

Shares of the San Francisco-based company, which has also kept a tight leash on operating costs, jumped nearly 10pc to $5.19 in after-market trading.

Fitbit sold 3.5 million devices in the reported quarter, beating estimates of 3.42 million. Average selling price increased 3pc to $108 per device.

The company, which is popular for its colourful fitness trackers, is a late entrant to the smartwatch market and has been facing stiff competition from tech players with deeper pockets such as Apple and Samsung.

Reuters

Irish Independent

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