Fitbit (FIT): Lower Demand And Higher Spending Crushed Guidance - Leerink

November 3, 2016 8:16 AM EDT
Get Alerts FIT Hot Sheet
Price: $8.03 -1.35%

Rating Summary:
    5 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
Trade FIT Now!
Join SI Premium – FREE

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.

For an analyst ratings summary and ratings history on Fitbit click here. For more ratings news on Fitbit click here.

Shares of Fitbit closed at $12.81 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Earnings

Add Your Comment