Fitbit is crashing

Fitbit shares dropped by as much as 15% in after-hours trading on Monday after the company reported quarterly results.

Profits and revenues for the fourth quarter crushed estimates, but guidance for the current quarter was weak.

In the earnings release, Fitbit said that higher manufacturing costs, and the global launch of new products — the Fitbit Blaze and Alta — would affect its first-quarter results.

The company said that it expects first-quarter revenues to be in a range of $420 million to $440 million, below the expectation for $484.6 million, according to Bloomberg.

The maker of fitness trackers posted adjusted earnings per share (EPS) of $0.35 for the fourth quarter and revenues of $711.6 million.

Fitbit had been expected to report quarterly adjusted EPS of $0.25 on revenues of $648 million.

Ahead of the release, analysts had focused on whether Fitbit is thriving amid increasing competition in the market for wearables.

Over the holidays, the app surged on the Apple App Store charts, suggesting to some that Fitbit devices were a popular gift item.

Fitbit said it sold 8.2 million devices in the fourth quarter. It said that 79% of its revenues were derived from new products, including the Fitbit Charge and Surge.

And for the full year — Fitbit’s first as a publicly traded company — 21 million devices were sold, as the company earned $1.9 billion in revenue.

CEO James Park said in the earnings release: “We believe we are beginning 2016 with strong customer engagement and retention, an accelerating pace of innovation and competitive differentiation, and a foundation of significant revenue growth and profitability in 2015.”

Fitbit shares were up about 5% at the end of trading on Monday. They have fallen about 45% over the past 12 months.

Here’s a chart showing the drop in after-hours trading:

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