Fitbit and Electronic Arts released their latest earnings reports after closing bell tonight. Fitbit reported adjusted earnings of 12 cents per share, compared to the consensus estimate of 11 cents per share. Sales came in at $587 million, also beating the analyst estimate of $577.7 million. In last year’s second quarter, the fitness wearable device maker posted $400 million in sales.
Electronic Arts reported adjusted earnings of 7 cents per share on $1.27 billion for its first quarter of fiscal 2017. After adjustments for deferred revenue, sales came in at $682 million. Those numbers compare to the consensus estimates of 2 cents per share in losses on $650.66 million in revenue.
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Fitbit’s profits fall
Fitbit’s GAAP earnings declined to 3 cents per share from 7 cents per share last year. The company sold 5.7 million devices in the second quarter with the U.S. making up 76% of second quarter revenue.
“Second quarter results reflect accelerated unit and revenue growth in the U.S. and EMEA, our two largest markets, despite an unusually strong Q215 with the full availability of Fitbit Charge HR fulfilling built-up demand in that quarter,” Fitbit cofounder and Chief Executive James Park said in a statement. “Our strong profitability reflects careful management of operating expenses, while we continue to invest in future growth.”
Fitbit expects third quarter revenue to be between $490 million and $510 million and adjusted EBITDA to be between $70 million and $80 million. It expects a non-GAAP gross margin of about 48% to 49% and non-GAAP earnings of between 18 cents and 19 cents per share. Wall Street’s consensus estimates for the third quarter are 17 cents per share in adjusted earnings and $498.5 million in sales.
For the full year, Fitbit projects between $2.5 and $2.6 billion in revenue and non-GAAP earnings of $1.12 to $1.24 per share, compared to the consensus estimates of $1.17 per share and $2.58 billion. Other full-year estimates from Fitbit management include adjusted EBITDA of between $430 million and $490 million and a non-GAAP gross margin of about 47%.
Shares of Fitbit surged by as much as 6.38% to $14 per share in after-hours trading
Electronic Arts’ guidance a bit light
Electronic Arts’ GAAP earnings were $1.40 per share.
“Our digital business drove this quarter, particularly outperformance from FIFA Ultimate Team on console and Star Wars: Galaxy of Heroes on mobile,” said Electronic Arts CFO Blake Jorgensen said in a statement. “This success along with the launch of NBA LIVE Mobile gives us great confidence in our ability to operate and add new live services through the year.”
Electronic Arts expects GAAP net revenue to be about $4.75 billion for the full fiscal 2017. The company expects GAAP losses of 17 cents per share and $915 million in sales for the current quarter, which is light of the analyst estimate of $1.11 billion. However, the game maker will stop adjusting for deferred revenue when it reports for the current quarter.
Shares of Electronic Arts fell by as much as 1.34% to $75.75 in after-hours trades.