Nautilus stock plummets after profit and revenue outlook is well-below expectations
Shares Nautilus Inc. plummeted 42% toward a more-than 5-year low in premarket trade Friday, after the fitness company provided a fourth-quarter outlook that was well below expectations and said it was implementing an “aggressive” cost-cutting program. The company said late Thursday it expected earnings per share from continuing operations of 4 cents to 5 cents a share, while the FactSet EPS consensus as of Dec. 31 was 56 cents. Revenue is now expected to be $114 million to $116 million, below the year-end FactSet consensus of $149.6 million. Nautilus said it was expecting “significantly stronger” direct segment sales, but expected fourth-quarter direct segment sales of $50 million is down from $71.6 million a year ago. The company said it’s cost-cutting plan aims to rescale operations to be more profitable on a lower sales base. The stock was on track to open at the lowest price seen during regular session hours since November 2013. It has lost 8.8% over the past three months through Thursday, while the S&P 500 has slipped 4.8%.
Source : MTV
