Fitbit Inc. (NYSE: FIT) is truly proving to be a one-hit wonder. It has great products and has a solid ecosystem being built, but the strategy for continued growth ahead feels more than just muted. It has seen many post-earnings analyst downgrades.
Fitbit saw its shares lose about a third of their value on Thursday after the company reported its third-quarter earnings after the close on Wednesday. Essentially, the company posted $0.19 in EPS and $503.8 million in revenue. However consensus estimates called for EPS of $0.17 and $506.9 million in revenue. Despite the earnings beat, investors are concerned that Fitbit might not be growing fast enough to compete with its larger wearables competitors like Apple or even Nike.
Fitbit’s stock price was down over 29% at $9.01 midday Thursday, and its new 52-week low is $8.93. Fitbit’s prior 52-week range was $11.65 to $38.15, and the old consensus price target was $20.88 before the slew of downgrades. What does 45 million shares (six times normal volume) traded by noon tell you?
Though Groupon Inc. (NASDAQ: GRPN) is not a fresh earnings implosion this week, last week was more than brutal for the stock. The daily deals site making acquisitions is being deemed a waste of money by the company because the barriers to entry are next to zero.
Groupon released its most recent earnings report last week on Wednesday and consequently got slaughtered. The company posted a net loss of $0.01 per share and $720.5 million in revenue. The consensus estimates had called for a per-share net loss of $0.02 on revenue of $707.8 million. Global units sold declined 5% year over year to 49 million, primarily driven by country exits and restructuring efforts in international segments.
Groupon’s shares were last seen up 1.5% at $3.90 on Thursday, but this was a $5.26 stock ahead of earnings last week, and the drop to under $4 has now persisted for the fifth consecutive day. Investors were just starting to think this was getting better, as the 52-week range is $2.15 to $5.94. Even with the recovery from the post-earnings low, Groupon shares are still down over 25% from last week.
YRC Worldwide Inc. (NASDAQ: YRCW) is a far larger trucking outfit than its mere $279 million market cap would imply, based upon close to $5 billion in annual revenues. This is way down from years past, and analysts and many investors have thrown in the towel over the years.
The company reported its third-quarter earnings last week and investors were not happy, sending the shares lower by over 25% initially — and it got worse from there. The company had EPS of $0.42 and $1.22 billion in revenue. The consensus estimates were $0.53 per share and $1.23 billion, even if you understand that this has very thin analyst coverage.
Its shares were trading at $13.53 on October 27, and then they fell to $9.50 on well over the 3 million shares traded the following day. Now zoom forward and the stock was down to $8.02 by November 2. Shares were back up 4% more to $8.38 in midday Thursday trading, but this is still down a whopping 38%, even after the bounce. The 52-week range is $6.25 to $17.73, so it is down over 50% from its 52-week high.