Fitbit shares collapsed by more than 17% on Thursday as the wearables manufacturer forecast second-quarter revenues that were lower than analysts expected.
While earnings released on Wednesday beat expectations, the company provided guidance for the current quarter that were below even the lowest forecast.
Fitbit reported adjusted earnings per share (EPS) of $0.10, beating the forecast for $0.02, according to Bloomberg.
Revenues came in at $505.4 million, also topping the estimate for $443.3 million.
Guidance for the second quarter was pushed down to $0.08-$0.11, versus an expected level of $0.26.
Fitbit also revealed that it had sold 4.8 million devices during the first quarter.
According to IDC, Fitbit moved the most wearable devices globally in 2015 and had the largest market share.
Some experts worry that the company will continue to lose market share to Apple, Samsung, and other competitors in the smart devices market.
Fitbit’s guidance for profits this year also beat expectations. It sees full-year adjusted EPS at $1.12-$1.24, up from an earlier projection.
“Based on the first quarter’s performance and momentum, we are confident about the remainder of the year, which is reflected in our increased guidance,” said CEO James Park.
The company says full year revenues will reach $2.5 billion to $2.6 billion.
Since going public in June 2015, the company has lost half of its market value.