Zepp Shares Drop On Q4 Guidance Cut

Zepp Health Corp ZEPP offered an update to its guidance for the fourth quarter of 2021 and the progress of its share repurchase program.

• Zepp lowered its Q4 net revenue outlook to RMB1.6 billion - RMB1.75 billion from the prior guidance of RMB1.75 billion - RMB2.0 billion.
• Zepp slashed the guidance, citing more significant than anticipated effects of Covid, including a more persistent worldwide chip shortage and newly increased Covid restrictions and lockdowns in vital European markets due to the Delta and the new Omicron variants.
• Meanwhile, expectations remain for the company to maintain profitability.
• Zepp has repurchased ~$3.6 million of stock out of its total authorization of up to $20 million. The company intends to continue the buyback program.
• Price Action: ZEPP shares traded lower by 3.76% at $4.86 in the premarket session on the last check Friday.