Fitbit Tanks As Weak Outlook Overshadows Better-than-expected Results

Shares of Fitbit Inc. tanked in Monday's extended session after the maker of wearable fitness-tracking devices posted outlooks for the current quarter and the full year that were significantly below Wall Street's expectations. Fitbit reported its fourth-quarter earnings rose to $64.2 million, or 26 cents a share, from $39.2 million, or 19 cents a share, a year ago. On an adjusted basis, the San Francisco company would have earned 35 cents a share. Revenue nearly doubled to $711.6 million from $370.2 million. Analysts surveyed by FactSet had projected earnings of 25 cents a share on revenue of $649 million. Fitbit expects first-quarter adjusted earnings per share of break even to 2 cents in the current quarter and $1.08 to $1.20 for 2016. Analysts are projecting first-quarter EPS of 23 cents and full year EPS of $2.15. Fitbit also forecast first-quarter revenue in a range of $420 million to $440 million and $2.4 billion to $2.5 billion for the full year, compared with the Street's estimate of $484 million in the first quarter and $9.36 billion for 2016. Fitbit shares slumped 13% in after-hours trading.