Fitbit jumps after earnings and revenue beat (FIT)
- Fitbit shares were up 2% in after-hours trading on Wednesday after the company's first-quarter results topped expectations.
- The wearables maker has focused on 'affordability' after increased competition from Apple.
- Watch Fitbit trade live.
The wearables maker Fitbit reported better-than-expected results, sending shares up 2% in after-hours trading on Wednesday.
The company reported a loss of $0.15 a share, better than the $0.22 loss that was anticipated. In addition, first quarter revenues totaled $272 million, 5% above the $260 million forecast.
Fitbit has been under increasing pressure as Apple has focused on the space. Fitbit's shares are down almost 90% from its 2015 highs, which were reached just months after The Apple Watch first shipped to customers in April 2015.
Under cofounder and CEO James Park, Fitbit has increasingly sought to pivot to more affordable products to lessen competition with Apple. Fitbit is the No. 2 smartwatch maker after Apple.
"New users are continuing to join the Fitbit platform with active users increasing in the first quarter, underscoring the effectiveness of our strategy to bring more users onto the Fitbit platform with the introduction of more accessible, affordable devices," Park said in the earnings release.
Including Wednesday's after-hours action, Fitbit shares are up 10% this year.