Fitbit Inc. (NYSE: FIT) posted its fourth-quarter earning result on Monday, beating analysts’ expectations. But shares still plunged after forecast missed estimates and analysts downgraded the stock.
The San Francisco-based company posted fourth-quarter earning per share of 35 cents, topping analysts’ expectations of 25 cents per share, about 66 percent higher than the earning a year earlier. Total revenue in the quarter is about $712 million, higher than analysts’ estimates of $648 million.
The sales boost in the holiday season. The wearable fitness device maker said it sold 8.2 million connected health and fitness devices in the fourth quarter, compared with 5.3 million a year earlier. The sales for 2015 were 21.4 million.
However, the company posted weaker-than expected guidance. Fitbit said it projected first-quarter earning per share would be between zero and $0.02, much lower than Wall Street’s estimates of 23 cents per share. The company also projected that the revenue for next quarter would between $420 million and $440 million, also fell short of analysts’ estimates. The company said that higher costs and rollout of its newest products would hit the sales.
“For the first quarter 2016, Fitbit expects several dynamics to drive results. For the first time in the company’s history, Fitbit will make a global launch of new products, Fitbit Blaze and Alta. Launching media campaigns around the world is expected to drive higher sales and marketing expenses for the quarter.” The company said.
Fibit also faces strong competition more than ever. Apple, Samsung and Xiaomi are all competing for the market shares. Fitbit’s market share fell to 22 percent in the third quarter of 2015 from 33 percent a year earlier, according to IDC. The company shares fell 44 percent this year.
Fitbit share fell 19.13 percent to $13.36 at 12:13 p.m. in New York.