What happened

Shares of Fitbit (NYSE:FIT) were trading 9.8% lower near 2:35 p.m. EDT. The fitness-tracking specialist presented a solid second-quarter report on Wednesday night, followed by guidance roughly in line with analyst projections. Share prices rose in Thursday's early morning session but came crashing down later on.

Silhouette of a tired sportsman resting with his hands on his knees in front of a golden Spanish sunset.

Image source: Getty Images.

So what

Fitbit's second-quarter sales came in at $299 million, 15% below the year-ago period's revenues but above Wall Street's $285 million consensus estimates. On the bottom line, adjusted net losses landed at $0.22 per share, down from an $0.08 loss per share in the same quarter from 2017, but still better than the $0.24 consensus loss estimate.

The report did little to change the opinions of analysts. I found bulls, bears, and firms with a hold rating on the stock all reiterating their previous stances, albeit often with slightly higher target prices.

Now what

The company's results have been unpredictable since 2016, but Fitbit shares posted an impressive 16% gain in the first half of 2018. Some investors may have been holding out for something better than these falling revenues and negative earnings, even if the report exceeded analyst expectations across the board.

It doesn't help that Fitbit's trailing earnings and free cash flows are running in the red, making it difficult to pin down a reasonable valuation for the stock using profit-based ratios.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fitbit. The Motley Fool has a disclosure policy.