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Fitbit's Holiday Season Even Worse Than Feared

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Wearable fitness device maker Fitbit (FIT) late Wednesday reported worse-than-expected December-quarter results, even though it preannounced a dismal holiday shopping season on Jan. 30. It also guided analysts lower for the current quarter.

Fitbit stock was flat in after-hours trading on the stock market today, but this was after falling 2.7% to 5.88 in the regular session. Shares have traded under 10 since Nov. 3, after the company gave disappointing guidance and posted disappointed Q3 results.

Results: Fitbit lost 56 cents a share excluding items in the fourth quarter, swinging from a year-earlier profit of 35 cents a share. Sales fell 19% to $574 million. Analysts polled by Thomson Reuters expected Fitbit to lose 50 cents a share ex items on sales of $576 million. Fitbit's results were within the lowered guidance range the San Francisco-based company provided last month, but missed Wall Street's consensus estimates.

Q1 Guidance: For the current quarter, Fitbit expects to lose 19 cents a share ex items on sales of $280 million, at the midpoint of its guidance. Wall Street was modeling Fitbit to lose 15 cents a share on sales of $307 million.

Full-Year Guidance: For 2017, Fitbit is targeting an adjusted loss of 33 cents a share on sales of $1.6 billion. Wall Street was looking for a loss of 32 cents a share and sales of $1.59 billion.

Fitbit's Q4 numbers came hours after rival Garmin (GRMN) reported better-than-expected holiday quarter results thanks to strong sales of sports and fitness wearable devices.

"Our 10-year history of building this category, coupled with our powerful brand and engaged global community gives us confidence we are making the right investments to support our vision and drive long-term success," Fitbit CEO James Park said in the company's earnings release. "We will leverage our leadership position, recently acquired talent and (intellectual property), and the valuable data we collect to improve demand and continue to set the pace of innovation for the industry through more personalized experiences, deeper insights and guidance, expansion into new categories and deeper integration within the health care system."

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February 23, 2017
 
 
 

 

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