uploads/2018/05/5-8.png

Fitbit Stock Fell 6.6% Last Week

By

Updated

Stock fell 6.6% last week

Fitbit (FIT) stock fell 6.6% in the week ended May 4 to close at $4.95 per share. The stock has generated returns of 22.0% in the last 12 months and 3.6% in the last month after falling 22.0% in 2017. Fitbit is trading 10.0% above its 52-week low of $4.51 and 32.0% below its 52-week high of $7.32.

Fitbit announced its 1Q18 results on May 2, reporting revenues of $248.0 million for a fall of 17.0% YoY (year-over-year). Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) reached -$0.17 in 1Q18, higher than its expected EPS of -$0.19. Analysts expected Fitbit to post revenues of $247.1 million in 1Q18.

Article continues below advertisement

Revenue guidance drove stock downward

Fitbit stock fell despite the company beating its earnings and revenue estimates. Fitbit expects its revenues to fall 16.0%–22.0% in 2Q18 with estimated EPS from -$0.23 to -$0.27. Fitbit had posted break-even non-GAAP EPS in 2Q17. Fitbit expects its revenues to fall 7.0% YoY to $1.5 billion in fiscal 2018.

Fitbit has been struggling to compete with Apple and low-cost manufacturers like China’s (FXI) Huawei and Xiaomi in the wearables market.

Although Fitbit’s shipments fell 27.0% YoY to 2.2 million devices in 1Q18, the firm’s average selling price (or ASP) rose 16.0% to $112.00. Devices such as Versa, Ionic, and Aria 2 drove device sales in 1Q18.

Advertisement

More From Market Realist