Fitbit Inc (NYSE:FIT) had an underwhelming fourth quarter, sending shares down after the market closed Monday.
The wearable device manufacturer announced a loss for the period, coming in at 2 cents per share. Analysts polled by Thomson Reuters were expecting the company to report a break-even quarter.
Fitbit also managed to miss the Wall Street consensus estimate on the revenue front as the company raked in $571 million in sales, below the $589 million that analysts were calling for, according to data compiled by Thomson Reuters.
The disappointing figures stemmed from a steep decline in the company’s consumer hardware sales as it sold 15.3 million devices for the fiscal year 2017, which was about 7 million less than the 22.3 million devices sold in 2016. Plus, Fitbit had a very slow holiday season that was unable to compete with a slew of new smartwatches and phones that have increased their focus on health.
For its first quarter, the company says that its figures will slide further as revenue is slated to fall 15% to 20% compared to the year-ago quarter, due in part to “consumer demand shifting towards smartwatches.”
“In 2018 we’ll focus on managing down expenses, continuing to expand in the smartwatch category and supporting our engaged global community on their health and fitness journeys,” James Park, Fitbit co-founder and CEO, said in a statement.
FIT stock plummeted about 10.8% after the bell Monday.
