Fitbit Plummets after Reporting Fourth Quarter Results

Shares of wearable device maker Fitbit saw its shares collapse on Monday after reporting fourth quarter results.

The stock sank 13% in after-hours trading after reporting a loss for the fourth quarter. Fitbit reported a loss of 2 cents while analysts on Wall Street had been expecting the company to break even.

Revenue at $571 million was also below the $589 that analysts had been expecting.

A slow holiday quarter and a big decline in the company’s consumer hardware sales contributed to the bad results. Fitbit said it sold 15.3 million devices for fiscal year 2017. This was 7 million less than the year before.

Looking ahead, the company has warned that its numbers will continue to drop and revenue is expected to fall 15% to as much as 20% compared to the year ago first quarter. The company has cited “consumer demand shifting towards smartwatches” for the decline.

According to CEO James Park, “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.”
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Disclaimer: We have no position in Fitbit Inc. (NYSE: FIT) and have not been compensated for this article.