Weak Current Quarter Profit Forecast Overshadow Fitbit’s Healthy Fourth Quarter Earnings
On Monday, San Francisco based Fitbit Inc. reported quarterly earnings that surpassed the market expectations but, its weak outlook for the year took a toll on its share prices during the after-market trading.
The wearable device maker said its Q4 net income was $64.2 million or 26 cents a share.
For the three months period, Fitbit posted revenue of $711.6 million which also surpassed analysts' forecasts. In the previous year earlier on revenue of $370.2 million Fitbit had earned $39.2 million or 19 cents a share.
However, Fitbit Inc's healthy quarterly profits were overshadowed by the profit forecast for the ongoing quarter, which failed to keep in line with the expectations of Wall Street by big margin. The company is invests in a big way in its new products and the weak outlook sent its shares sixteen percent down in afterhours trading.
Till December 31, the number of active users doubled to 16.9 million on a year on year basis where as registered number of device users increased to 29 million.
The company reported $175.7 million or 75 cents per share profits for the year with revenue of $1.9 million.