Fitbit (FIT): Lower Demand And Higher Spending Crushed Guidance - Leerink
- Banks, telecoms lead Wall Street up; another Dow record
- Western Digital (WDC) Raises Q2 Outlook
- bluebird bio (BLUE) to Offer $200M of Common Stock
- Dave & Buster's Entertainment (PLAY) Tops Q3 EPS by 11c, Raises FY Revenue Guidance
- After-Hours Stock Movers 12/06: (PLAY) (ANTH) (WDC) Higher; (AVAV) (ESV) (BLUE) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium 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
- Cowen Downgrades Nike (NKE) to Neutral; Sees Lower Guidance
- UPDATE: Stifel Downgrades Coca-Cola European Partners (CCE) to Hold
- Berenberg Upgrades Nucor (NUE) to Buy
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!