Scalper1 News
Fitbit ( FIT ) late Wednesday smashed Wall Street’s targets for the first quarter, but delivered mixed guidance for the current quarter that disappointed investors. Fitbit stock plunged as much as nearly 12% in after-hours trading following the earnings news release. In Wednesday’s regular session, Fitbit stock dipped a fraction, to 17.10. Fitbit made its IPO last June, pricing shares at 20. The maker of wearable fitness devices earned 10 cents a share excluding items on sales of $505.4 million. Analysts polled by Thomson Reuters expected 3 cents and $444.3 million. On a year-over-year basis, Q1 sales rose 50%. But that’s down from 92% growth in Q4, 168% in Q3 and 253% in Q2. Q1 earnings per share dropped 63% from 27 cents in the year-earlier period. For the current quarter, Fitbit is projecting earnings per share of 8 to 11 cents excluding items on sales of $565 million to $585 million, or $575 million at the midpoint. Wall Street had been modeling for Fitbit to earn 26 cents a share, up 24%, on sales of $531.3 million, up 33%. For the year, Fitbit expects non-GAAP EPS of $1.12 to $1.24 on sales of $2.5 billion to $2.6 billion. Analysts on average were looking for 2016 EPS of $1.13 on sales of $2.46 billion. Fitbit competes in the health-and-fitness wearables market with Apple ( AAPL ), Garmin ( GRMN ), Microsoft ( MSFT ), Under Armour ( UA ) and others. Last week, Fitbit announced a distribution deal Chinese e-commerce website Tmall.com , a unit of Alibaba Group ( BABA ), that could bolster its prospects in China. Scalper1 News
Scalper1 News