Fitbit Q3 Profit Down - Update

(RTTNews) - Shares of Fitbit Inc. (FIT) slipped 7 percent in extended session on after the maker of wearable technology reported a drop in third-quarter profit and detailed a weak outlook.

Fitbit's profit for the third quarter dropped to $45.8 million or $0.19 per share from $68.9 million or $0.34 per share last year. Adjusted earnings for the quarter were $0.24 per share, up from $0.13 per share last year.

Revenues for the quarter jumped to $409.3 million from $152.9 million last year.

Analysts polled by Thomson Reuters estimated earnings of $0.10 per share on revenues of $350.97 million.

The company said it sold 4.8 million fitness devices in the third quarter, as U.S. revenue grew 130 percent year-over-year; APAC surged 314 percent, EMEA jumped 282 percent and Other Americas rose 286 percent.

Looking forward, Fitbit expects fourth-quarter adjusted earnings of $0.20 to $0.25 per share and revenues of $620 million to $650 million. Analysts currently estimate earnings of $0.20 per share and revenues of $580.7 million.

For the full year, the company estimates earnings of $0.92 to $0.96 per share and revenues of $1.77 billion to $1.80 billion. Analysts currently estimate earnings of $0.77 per share on revenues of $1.69 billion.

Fitbit announced the release of lockup restrictions on shares owned by its employees and consultants, which amounts to 2.3 million shares or 10 percent of common stock shares, effective November 5.

Meanwhile, Fitbit's smaller rival Jawbone has filed an antitrust claim against Fitbit in response to a patent infringement case filed by the latter in September.

Jawbone accused Fitbit of violating federal antitrust laws and its allegations as "plainly meritless." Jawbone said Fitbit is "knowingly and willfully misusing its patents" as part of its efforts to protect its market power.

FIT closed Monday's trading at $40.80, up $0.26 or 0.64%, on the NYSE. The stock further dropped $3.15 or 7.72% in the after-hours trade.