Fitbit spikes after losing less money than expected

Fitbit’s stock spiked after the company reported a first-quarter loss that was less than analyst forecast.

The adjusted loss for the period was $US0.15 per share, beating consensus estimates of a $US0.18 per share deficit. The maker of wearable fitness products also reported quarterly revenue of $US298.9 million, exceeding an analyst forecast of $US279.4 million.

“Underlying consumer demand has been better than our reported results in North America as we work down channel inventory levels,” cofounder and CEO James Park said in a statement. “While 2017 remains a transition year, we have executed on our restructuring plan and are focused on positioning the company for the next stage of growth within wearables and connected health.”

The strength in revenues is welcome news for shareholders that have seen the company lose more than 50% of its market value over the last year. That included a 34% single-day drop on November 2, the biggest loss since the company went public in June 2015, after Fitbit’s sales forecast for the crucial holiday shopping season fell well short of analyst expectations.

Following the first-quarter earnings news, shares of Fitbit rose 7.9% to $US6.13 a share in after-market trading.

Get the latest Fitbit stock price here.

NOW WATCH: This animated map shows how religion spread across the world

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.