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Fitbit Crashes 11% On Weak Guidance

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Shares of Fitbit Inc (NYSE: FIT) are trading down roughly 11 percent in Wednesday’s after-hours session, following the company’s Q1 results. Even though EPS of $0.10 and revenue of $505.4 million (up 50.1 percent year-over-year) beat the Street's estimates by $0.07 and $62.2 million, respectively, guidance for Q2 was considerably disappointing.

For the ongoing quarter, management said it anticipates EPS of $0.08 to $0.11, below the $0.26 consensus. For revenue, the company guided for Q2 sales of $565 million to $585 million, higher than the Street’s $532.8 million estimate. The outlook for the full year is also encouraging: while analysts are modeling EPS of $1.13 and revenue of $2.46 billion, management said it expects revenue between $2.5 billion to $2.6 billion and EPS of $1.12 to $1.24.

Related Link: 6 Things To Know About Fitbit Before Earnings

CEO James Park said, "Based on the first quarter’s performance and momentum, we are confident about the remainder of the year, which is reflected in our increased guidance." However, investors did not seem especially convinced by his words. Shares traded recently at $15.30, down 10.1 percent.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted-In: Earnings News Guidance After-Hours Center Movers Tech

 

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