Fitbit Inc And Square Inc Both Surge On Earnings, Revenue Beats

Fitbit and Square released their latest earnings reports after closing bell tonight. Fitbit posted adjusted losses of 15 cents per share on $298.9 million in revenue, compared to the Wall Street consensus estimates of 18 cents per share on losses and $279 million in revenue. The company had guided for $270 million to $290 million in sales. In the same quarter a year ago, the fitness wearable maker reported $505.4 million in sales.

Square reported losses of 4 cents per share on $462 million in revenue, compared to the analyst estimates of 8 cents per share in losses and $451.5 million in revenue. In the year-ago quarter, the digital payments processor reported losses of 29 cents per share on $379 million in revenue. Square’s adjusted revenue rose to $204 million from $146 million a year ago and compares to consensus at $192.9 million.

Fitbit swings to a loss

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Fitbit posted a GAAP loss of 27 cents per share, compared to the year-ago quarter’s GAAP profit of 5 cents per share. Adjusted EBITDA fell into the red to -$52.3 million from the year-ago quarter’s $45.1 million. The GAAP gross margin fell to 39.6% from 46.3% in the year-ago quarter, while the non-GAAP gross margin fell to 40% from 46.6% a year ago. The company sold 3 million devices during the first quarter.

Fitbit now expects full-year adjusted losses of 44 cents to 22 cents per share on $1.5 billion to $1.7 billion in sales. For the second quarter, the company expects adjusted losses of 14 cents to 17 cents per share and sales of $330 million to $350 million, versus the consensus estimates of 11 cents per share in losses and $350 million in sales.

Fitbit shares rose by as much as 6.51% to $6.05 in extended trading following tonight’s earnings release.

Square shares rise

square earnings

Square said gross payment volume surged 33% to $13.6 billion in the first quarter. Its adjusted EBITDA jumped to $27 million from -$9 million in the year-ago quarter.

The company boosted its full-year revenue guide to between $2.12 billion and $2.16 billion from the previous range of $2.09 billion to $2.15 billion. Square’s adjusted revenue guide moves to $890 million to $910 million compared to the consensus of $880 million to $900 million. The company’s adjusted earnings guidance moves to between 16 cents and 20 cents per share from the previous range of 15 cents to 19 cents per share. For the second quarter, the company expects adusted earnings of 3 cents to 5 cents per share.

Shares of Square jumped by as much as 6.4% to $19.45 in after-hours trading.