SAN FRANCISCO (AP) — Wearable fitness device maker Fitbit said its net income and revenue more than doubled in the third quarter, topping Wall Street’s expectations, but Fitbit’s shares skidded after the company announced a large stock sale.
Fitbit, which went public in June, said the company and shareholders want to sell as many as 24.2 million shares. The San Francisco company had 42.1 million shares on the market as of Oct. 31.
Fitbit said it wants to increase its financial flexibility, get funding for research and marketing, and boost the number of shares on the market.
For the July-September quarter, Fitbit’s net income after dividends on preferred stock rose to $45.8 million, or 19 cents per share.
Excluding one-time items its profit totaled 24 cents per share, and revenue climbed to $409.3 million as Fitbit sold 4.8 million devices.
Analysts expected a profit of 10 cents per share and $358.7 million in revenue, according to Zacks Investment Research.
The company also raised its projections for the year, to profit of 92 cents to 96 cents per share on $1.77 billion to $1.8 billion in revenue.
It had forecast net income of up to 77 cents per share on as much as $1.7 billion in revenue.
Shares of Fitbit Inc. fell $3.91, or 9.6 percent, to $36.89 in aftermarket trading.
Fitbit’s initial public offering priced shares at $20 and raised $731.5 million.