Fitbit Inc (NYSE:FIT) shares have been under pressure since it announced bleak outlook for fiscal 2018 and lower than expected results for the final quarter of the last year. The company’s revenue of $570 million in the fourth quarter missed analysts’ consensus estimate by $18 million, while the revenue declined 0.5% compared to the year-ago period.
Fitbit manufactures and sells wearable health and fitness trackers. Its stock price plunged more than 26% in the last three months to $5 a share at present. The stock has the 52-week trading range of $4.62 to $7.35 – with the market capitalization of just over $1 billion and the daily trading volume of 7.2 million shares
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Fourth Quarter Results
Substantial gains from America’s ex-U.S., APAC and EMEA allowed the company to offset lower revenues from the U.S, markets. Its APAC revenue increased 56% to $39 million, while EMEA revenue rose 16% to $155 million and other America’s revenue surged 40% to $47 million compared to the past year period.
However, its U.S. revenue declined 13% year over year to $330 million in the fourth quarter- the U.S. revenue accounts for 59% of the total revenue.
Bleak Outlook for Fiscal 2018
Though the company has narrowed the loss in the fourth quarter amid strong operational efficiencies, the gloomy outlook for fiscal 2018 negatively impacted trader’s sentiments.
The company expects its first-quarter revenue to stand in the range of $240M-$255M, representing a huge decline compared to the consensus estimate for $340.3M — a year on year drop of 15-20%. The company’s earnings guidance for the first quarter of -$0.21 to -$0.18 also missed the street estimate for -$0.09. Moreover, lower revenues and earnings could also impact its free cash flows and investment potential.
Its CEO said: “In 2018 we’ll focus on managing down expenses, continuing to expand in the smartwatch category and supporting our engaged global community on their health and fitness journeys.”
>>Fitbit Stocks Plummet After Hours
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