Fitbit Shares Plummet On Q4 Earnings Miss

The shares of Fitbit Inc. FIT dropped lower in the after-hours session on Thursday as the fitness wearables maker missed analyst expectations for the fourth-quarter earnings.

What Happened

Fitbit reported a net loss of $120.8 million for the quarter that ended in December 2019 compared to the $15.4 million net profit posted in the similar quarter last year.

The company reported a loss of 46 cents per share, missing the average 4 cents earnings estimated by analysts polled by FactSet, as reported by MarketWatch.

Fitbit had posted a profit of 6 cents per share last year. Net revenue was at $502.1 million, down 12% from last year's $571.2 million, and 5.6% lower than the analyst consensus of $531.7 million.

Fitbit agreed on a merger with Alphabet Inc. GOOGL GOOG subsidiary Google LLC in November last year, but the deal remains unfulfilled pending regulatory approval at a time when Alphabet along with other technology giants faces antitrust investigations into their acquisitions of smaller companies.

The San Francisco-based company said it would not host any earnings call or issue forward-looking guidance until its acquisition by Google is finalized, which it expects to happen by the end of this year.