Fitbit Drops on Margin Concerns in First Profit Report
Why Fitbit Is Dominating the Wearable Market
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Fitbit Inc. shares dropped 14 percent the day after the maker of wearable fitness trackers posted narrower margins in its first earnings report following an initial public offering.
Second-quarter gross margin, a measure of profitability, narrowed to 47 percent in the second quarter from 51 percent a year earlier. Revenue more than tripled to $400.4 million, and profit before certain items was 21 cents a share, San Francisco-based Fitbit said Wednesday in a statement. Analysts on average projected sales of $319 million and profit of 8 cents, according to data compiled by Bloomberg.