Wearable Tech Insider does not do stock or financial analysis, but Fitbit’s 1Q results, released yesterday, said interesting things about the state of the company.
Sales and earnings in the quarter beat analysts expectations, but the company’s profit outlook for 2Q were a third to a half of what was expected. (Sales, however, were projected to be strong.) As a result, the stock dropped about 12 percent after the market closed yesterday. The company’s stock, which hit the market at $20 about a year ago and topped $50 not long after, is now trading around $15.
For the full year, Fitbit — which remains the world leader in consumer wearables — expects profits of between $1.12 and $1.24 per share, higher than previous estimates.
The Blaze, Fitbit’s tracker aimed at the Apple Watch crowd, sold more than a million units since its introduction in January. As a whole, Fitbit’s sales were up 44 percent over the year previous, and helped raise the average selling price to above $100 for the first time. But margins are being squeezed, and that apparently makes the stock market nervous.