Investing.com -- Shares in Fitbit Inc (NYSE:FIT) rose considerably in after-hours trading in spite of declining earnings after the wearable technology company saw its revenues soar last quarter amid a surge in new products' sales.
During Fitbit's second quarter, which ended in late-June, the San Francisco-based company finished with revenues of $586.5 million for the three-month period, up by more than 45% from $400.4 million over the same quarter a year ago. Fitbit received a considerable boost from the rollout of a litany of new products, which now comprises 54% of the company's overall sales.
At the same time, Fitbit reported net profits of $6.3 million or 0.03 per share minus preferred dividend payouts, down from a total of $17.7 million or 0.07 in last year's second quarter. For the quarter, Fitbit's operating expenses jumped to $235.3 million, as the company invested heavily in marketing and research & developments efforts in attempts to compete with rivals such as Apple Inc (NASDAQ:AAPL) and Garmin Ltd (NASDAQ:GRMN).
Overall, Fitbit sold 5.7 million wearable devices on the quarter just missing analysts' expectations of 6.0 million.
"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," said James Park, Fitbit co-founder and CEO. "Our strong profitability reflects careful management of operating expenses, while we continue to invest in future growth."
Moving forward, Fitbit reiterated its forward guidance for the current quarter of 0.17-0.19 in adjusted earnings, along with revenue of $490-$510 million. Analysts expect to see adjusted earnings per share of 0.17 on sales of $498.5 million.
"Based on the progress of our business, against a backdrop of a growing worldwide opportunity for our products, we remain confident in our guidance for the year," Park added.
Shares in Fitbit soared 0.86 or 6.53% to 14.02 in after-hours. Fitbit shares are still down more than 50% from their IPO last year of $30.40.