Market Overview

Fitbit Shares Plummet On Q4 Earnings Miss

Share:
Fitbit Shares Plummet On Q4 Earnings Miss

The shares of Fitbit Inc. (NYSE: FIT) dropped lower in the after-hours session on Thursday as the fitness wearables maker missed analyst expectations for the fourth-quarter earnings.

What Happened

Fitbit reported a net loss of $120.8 million for the quarter that ended in December 2019 compared to the $15.4 million net profit posted in the similar quarter last year.

The company reported a loss of 46 cents per share, missing the average 4 cents earnings estimated by analysts polled by FactSet, as reported by MarketWatch.

Fitbit had posted a profit of 6 cents per share last year. Net revenue was at $502.1 million, down 12% from last year's $571.2 million, and 5.6% lower than the analyst consensus of $531.7 million.

Fitbit agreed on a merger with Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google LLC in November last year, but the deal remains unfulfilled pending regulatory approval at a time when Alphabet along with other technology giants faces antitrust investigations into their acquisitions of smaller companies.

The San Francisco-based company said it would not host any earnings call or issue forward-looking guidance until its acquisition by Google is finalized, which it expects to happen by the end of this year.

Price Action

Fitbit's shares traded 1.24% lower at $6.36 in the after-hours session on Friday. The shares closed the regular session 0.46% lower at $6.44.

 

Related Articles (FIT + GOOG)

View Comments and Join the Discussion!

Posted-In: Alphabet Fitbit GoogleEarnings News After-Hours Center Tech General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com