Fitbit (FIT): Lower Demand And Higher Spending Crushed Guidance - Leerink
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Leerink Partners analyst, David Larsen, reiterated his Market Perform rating on shares of Fitbit (NYSE: FIT) and cut his price target to $9 from $16. After FIT reported mostly inline 3Q16 results but lowered the outlook for 4Q16 and beyond. Management cited softness in overall demand from its device portfolio, a pull forward of Charge 2 Sales and manufacturing supply constraints as reasons for the 4Q revenue guide 25% below expectations.
Gross margins expected be down 200bps q/q and S&M spend is spiking for the holidays so FY16 EPS guide was cut 52%. The analyst cut his FY17 estimate from $1.25 to $0.74 on just an 8% revenue growth down from 15%, and lower margins.
Shares of Fitbit closed at $12.81 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Five Below (FIVE): One of the Best Growth Stories in Retail - Guggenheim
- Jefferies Cuts Price Target on Eros Int'l (EROS) to $18 Following Multi-Year Deal
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!