Fitbit shares were down 30% in premarket trading Thursday after the company cut its full-year forecast ahead of an anticipated slowdown in growth.
“We continue to grow and are profitable, however not at the pace previously expected,” said CEO James Park in the earnings statement on Wednesday.
The maker of fitness trackers said it now sees fourth-quarter adjusted earnings per share (EPS) in a range of $0.14-$0.18, far below analysts’ forecast for $0.75 according to Bloomberg. It lowered its full-year revenue guidance to a range of $2.32 billion and $2.4 billion, but analysts had expected $2.6 billion.
This weak guidance came ahead of the holiday quarter, which is critical for consumer-electronics makers and retailers, since their products are popular gift items.
The market for wearable fitness trackers is intensely competitive, with Fitbit stacked up against the likes of Garmin and Apple.
In the third quarter, Fitbit's unit sales grew 11%, and its average selling price rose by the same amount. New products like the Charge 2 and Flex 2 attracted new customers.
The company's quarterly EPS was $0.19, matching analysts' estimates. Revenue rose 23% year-on-year to $504 million, but missed the consensus forecast for $509 million.