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Fitbit sees lower revenue from new devices in first quarter, shares fall
[BENGALURU] Wearable device maker Fitbit Inc on Monday forecast current-quarter profit and revenue below Wall Street estimates and predicted lower revenue from newly launched products such Ionic and Alta HR.
Fitbit shares fell 11.3 per cent to US$4.93 in after-market trading after the company's fourth-quarter results also missed estimates due to an about 17 per cent drop in sale of its fitness trackers in the holiday quarter.
Revenue fell 0.5 per cent to US$570.8 million in the quarter and missed the average analyst estimate of US$588.9 million.
Fitbit has been under pressure from rivals such as Apple Inc , Samsung Electronics, Xiaomi Inc and Garmin Ltd that have been gaining ground in a fast saturating wearables market.
For the first quarter, the company said it expects adjusted loss per share in the range of 18 cents to 21 cents and revenue of US$240 million to US$255 million. Analysts on average expected a loss of 9 cents on revenue of US$340.3 million.
"Guidance is disappointing relative to our estimates and consensus. The press release indicates that demand for its Ionic smartwatch is strong, but isn't enough to offset the decline in demand for all of its older fitness trackers," Wedbush Securities analyst Alicia Reese said.
The company's net loss narrowed to US$45.5 million, or 19 cents per share, in the quarter ended Dec. 31, from US$146.3 million, or 65 cents per share, a year earlier.
On an adjusted basis, the San Francisco, California-based company reported a loss of 2 cents per share. Analysts on average expected the company to report a break-even, according to Thomson Reuters I/B/E/S.