Fitbit Shares Plunge After Revenue Miss, Lower Outlook

Shares of Fitbit plunged 30% after hours Wednesday after the company missed third-quarter revenue expectations and issued a lower-than-expected outlook. Fitbit reported net income of $26.1 million, or 11 cents per share, down from $45.8 million, or 19 cents per share in the year-earlier period. It reported adjusted earnings per share of 19 cents, in line with the FactSet consensus of 19 cents. Revenue was $503.8 million, up from $409.3 million in the year-earlier period, but below the FactSet consensus of $506.9 million. For the fourth quarter it expects revenue between $725 million and $750 million and adjusted EPS of 14 cents to 18 cents. FactSet analysts expected revenue of $985 million and EPS of 75 cents. For the full year 2016, Fitbit said it expects revenue between $2.32 billion and $2.34 billion and adjusted earnings per share of 55 cents to 59 cents. FactSet analysts expected revenue of $2.58 billion and EPS of $1.18. Shares of Fitbit have fallen 2.7% in the past three months, in line with the S&P 500's drop of 2.7%