Un-Fitbit?
Shares of Fitbit (FIT) plunged 33% to new, all-time lows on Thursday following the company's disappointing earnings results. Well, "disappointing" is an understatement really. Fitbit reported in-line EPS results and missed on revenue expectations, but guidance is what really took the stock down.
The company sees fourth-quarter revenues of $725 million to $750 million. While at the midpoint this would represent about 3.6% YoY growth, it fell so astoundingly short of analysts' expectations, one may have thought it was a typo. The investment community was expecting the company to generate sales of $985 million next quarter. At the midpoint, this is a 25% shortfall.
EPS guidance of $0.14 to $0.18 fell way short of analysts' expectations of $0.75 per share.
Maybe the stock would only be down 10% to 15%, that is, if full-year earnings and revenue guidance of ~$0.57 per share and ~$2.3 billion, respectively, didn't fall so… Read More …