On Thursday, shares of fitness tracking device maker Fitbit Inc. are plunging, down almost 30% in late-morning trading as the effects of its third quarter fiscal 2016 results continue to linger.
The company posted adjusted earnings (accounting for stock-based compensation but excluding 2 cents from non-recurring items) of 13 cents per share, surpassing the Zacks Consensus Estimate of 11 cents per share.
Revenues came in at $503.8 million, which missed estimates of $507 million but increased 23.1% year-over-year. New products like the Blaze, Alta, Fitbit Charge 2, Flex 2, and related accessories contributed 79% to Q3 revenues compared with 54% in the second quarter.
"We continue to grow and are profitable, however not at the pace previously expected. We are focused on improving the utility of our products and integrating more deeply into the healthcare ecosystem and believe we can leverage our brand and community to unlock new avenues and adjacencies of growth,” said Fitbit co-founder and CEO James Park.
What’s really hurting FIT stock today, however, is the company’s weak holiday fourth quarter guidance. Fitbit expects revenues to remain in the range of $725 million to $750 million, much lower than the Zacks Consensus Estimate of $991.19 million. Non-GAAP earnings per share should is now expected to be in a range of 14 cents to 18 cents per share; Zacks had pegged Q4 EPS to come in at 67 cents per share.
For full-year 2016, Fitbit forecasts adjusted earnings between 55 cents and 59 cents per share on revenues in the range of $2.32 billion to $2.35 billion. Previous estimates had adjusted earnings of $1.18 per share and revenue of $2.58 billion for the year.
FIT stock has fallen over 55% since its IPO in June 2015, when it priced at $20 a share. Now, Fitbit trades at just around $9 a share. Oh, how the mighty have fallen.
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Here's Why Fitbit (FIT) Stock is Plunging 30% Today
On Thursday, shares of fitness tracking device maker Fitbit Inc. are plunging, down almost 30% in late-morning trading as the effects of its third quarter fiscal 2016 results continue to linger.
The company posted adjusted earnings (accounting for stock-based compensation but excluding 2 cents from non-recurring items) of 13 cents per share, surpassing the Zacks Consensus Estimate of 11 cents per share.
Revenues came in at $503.8 million, which missed estimates of $507 million but increased 23.1% year-over-year. New products like the Blaze, Alta, Fitbit Charge 2, Flex 2, and related accessories contributed 79% to Q3 revenues compared with 54% in the second quarter.
"We continue to grow and are profitable, however not at the pace previously expected. We are focused on improving the utility of our products and integrating more deeply into the healthcare ecosystem and believe we can leverage our brand and community to unlock new avenues and adjacencies of growth,” said Fitbit co-founder and CEO James Park.
What’s really hurting FIT stock today, however, is the company’s weak holiday fourth quarter guidance. Fitbit expects revenues to remain in the range of $725 million to $750 million, much lower than the Zacks Consensus Estimate of $991.19 million. Non-GAAP earnings per share should is now expected to be in a range of 14 cents to 18 cents per share; Zacks had pegged Q4 EPS to come in at 67 cents per share.
For full-year 2016, Fitbit forecasts adjusted earnings between 55 cents and 59 cents per share on revenues in the range of $2.32 billion to $2.35 billion. Previous estimates had adjusted earnings of $1.18 per share and revenue of $2.58 billion for the year.
FIT stock has fallen over 55% since its IPO in June 2015, when it priced at $20 a share. Now, Fitbit trades at just around $9 a share. Oh, how the mighty have fallen.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>