Zepp Health's stock drops after revenue outlook cut, citing COVID effect and chip shortage

zepp-health's-stock-drops-after-revenue-outlook-cut,-citing-covid-effect-and-chip-shortage

Shares of Zepp Health Corp. ZEPP, dropped 4.0% in premarket trading Friday, after the China-based smart health technology company cut its fourth-quarter revenue outlook, citing a “greater than anticipated effects of COVID” and a more persistent global shortage of semiconductors. The company now expects fourth-quarter revenue of between RMB1.6 billion ($252.0 million) and RMB1.75 billion ($275.6 million), compared with previous guidance of between RMB1.75 billion and RMB2.0 billion. The company said it still expects to be profitable. Separately, the company said it has repurchased $3.6 million worth of its stock since Nov. 16, when it announced a $20 million stock buyback program. Zepp’s stock has tumbled 57.4% this year, while the iShares MSCI China ETF MCHI, -0.60% has dropped 22.0% and the S&P 500 SPX, -0.26% has soared 27.2%.

Source: Marketwatch

Related Posts