Updated from 7:51 a.m. with company statement
Fitbit (FIT) stock was down about 12% to $6.34 early Monday morning after reporting preliminary fourth-quarter results sharply below analysts' estimates.
The San Francisco-based company expects to report an adjusted loss between 51 cents and 56 cents per share for the current quarter, down from previous expectations of adjusted earnings between 14 cents and 18 cents a share.
Revenue is expected to range between $572 million and $580 million, down from between $725 million and $750 million.
Analysts surveyed by FactSet are modeling adjusted earnings of 17 cents per share on revenue of $735 million for the quarter.
"While we have experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during Black Friday, we have continued to grow rapidly in select markets like EMEA, where revenue grew 58% during the fourth quarter," CEO James Park said in a statement.
The company expects to report 6.5 million devices sold during the holiday period, below FactSet analysts' projections of 8 million devices sold.
For fiscal 2017, Fitbit now expects to report an adjusted loss between 22 cents and 44 cents per share on revenue between $1.5 billion and $1.7 billion.
FactSet analysts are projecting adjusted earnings of 58 cents per share on revenue of $2.3 billion for the year.
Additionally, Fitbit will lay off 110 employees, representing about 6% of its total workforce. Fitbit anticipates restructuring charges of about $4 million to be recognized in the fiscal 2017 first quarter.
The company hopes to reduce costs by roughly $200 million to $850 million for 2017.
