Fitbit upgraded to outperform from neutral at Wedbush

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Fitbit stock gains after earnings, revenue beat expectations

Shares of Fitbit Inc. were up 6.4% in after-hours trading Wednesday after the wearables pioneer posted better-than-expected results for its second quarter and delivered an in-line outlook for the third quarter. The company reported a net loss of $118.3 million, or 49 cents a share, compared with a net loss of $58.2 million, or 25 cents a share, in the year-earlier period. On an adjusted basis, the company posted a net loss of 22 cents, compared with 8 cents a year ago and the 24 cents that analysts had been projecting. Fitbit’s revenue fell to $299.3 million from $353.3 million in the prior June quarter. The consensus estimate called for $285.4 million in revenue. “Demand for Versa, our first ‘mass-appeal’ smartwatch, is very strong,” Chief Executive James Park said in a release. For the third quarter, Fitbit expects revenue of $370 million to $390 million. Analysts were forecasting $378 million. Shares were up 16% over the past 12 months, as of Wednesday’s close, while the S&P 500 had climbed 14%.

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