Top Stories
Top Stories

UPDATE 1-Fitbit lowers 2019 revenue forecast, shares sink 16%

(Adds details, compares with estimates)

July 31 (Reuters) - Wearable device maker Fitbit Inc forecast third-quarter revenue below analysts' estimates and lowered its 2019 sales outlook as the company expects weak smartwatch sales and lower average selling price.

Shares of the company plunged 16% in extended trading on Wednesday.

Fitbit moved into the smartwatch market to cushion the hit from slowing growth of its popular colorful fitness trackers, but has faced tough competition from deeper-pocket companies such as Apple Inc and Samsung Electronics.

For the third quarter, Fitbit forecast revenue between $335 million and $355 million, below the analysts' average estimate of $399.4 million, according to IBES data from Refinitiv. (

The company also forecast an adjusted loss of between 9 cents and 11 cents per share. Analysts were expecting a profit of 2 cents per share.

Fitbit also lowered its 2019 revenue forecast and now expects it to be between $1.43 billion and $1.48 billion, compared with prior expectations of $1.52 billion to $1.58 billion earlier.

The company's net loss narrowed to $68.5 million, or 27 cents per share, in the second quarter ended June 30, from $118.3 million, or 49 cents per share, a year earlier.

Excluding items, the company lost 14 cents per share.

Analysts on average had expected the company to post an 18 cents per share loss, according to IBES data from Refinitiv.

Revenue rose about 5% to $313.6 million, beating analysts' average estimates of $312 million.

(Reporting by C Nivedita and Neha Malara in Bengaluru; Editing by Sriraj Kalluvila)

Related Tags