Huami's Stock Drops Despite Strong Performance in Q2
The stock in Huami Corp. (NYSE: HMI) was trading down more than 5 percent, at $10.64 per share, on Monday afternoon, despite the company's better-than-expected financials for the second quarter.
The Beijing-based company, which sells smart wearable technology, said today that its revenue in the three months through June reached $151.3 million, up 37 percent year-over-year. Net income was $12.9 million, or 5 cents per share, nearly level with the same period last year.
"Solid topline revenue growth and strong profitability continued in the second quarter, as our brand, product lines, footprint and strategic initiatives, all continued to develop and expand globally," Huang Wang, the chairman and CEO of Huami, said in a statement on Monday.
Wang added "In the second quarter, we continued to expand and diversify our product lines. In late June and July, we launched multiple smartwatch products with various functionalities designed for different customer demands."
The company noted the performance of its smartwatches, Amazfit and Mi-Band 4. Mi- Band 4, which launched in the second quarter, provides a heart rate monitor, workout tracking, notifications from calls and messages from a connected phone and water resistance.
Huami reported that it shipped 8.3 million of Mi-Band 4 units in three months through June, up 54 percent from the sales of Mi-Band 3 a year ago.
For the full year of 2018, the company said its shipments of Amazfit products almost tripled, compared to 2017.
In June, the company joined Chengwei Capital, Spark Capital, Osage University Partners, and Qualcomm Venutures LLC, as investors in a $65.4 million Series D fundraising for San Francisco-based SiFive.
Looking forward, Huami said it plans to continue investing in its growth strategies such as nationwide expansion, diversification and new product releases.