Zepp Health Corp (NYSE:ZEPP) shares dwindle in price on New Year’s Eve, as the company offered an update to its guidance for the fourth quarter of 2021 and the progress of its share repurchase program.
Zepp lowered its Q4 net revenue outlook to RMB1.6 billion – RMB1.75 billion from the prior guidance of RMB1.75 billion – RMB2.0 billion.
Zepp slashed the guidance, citing more significant than anticipated effects of COVID, including a more persistent worldwide chip shortage and newly increased COVID restrictions and lockdowns in vital European markets due to the Delta and the new omicron variants.
Meanwhile, expectations remain for the company to maintain profitability.
Zepp has repurchased ~$3.6 million of stock out of its total authorization of up to $20 million. The company intends to continue the buyback program.
Zepp Health is a leading global developer of smart health technology, whose mission is to connect health with technology.
Since its inception in 2013, Zepp Health has developed a platform of proprietary technology including AI chips, biometric sensors, data algorithms and operating systems, which drive a broadening line of smart health devices for consumers, data analytics services for population health, and industrial medical technology for diagnostics and care delivery.
Its U.S. operations are based in Cupertino, Calif.
ZEPP shares traded lower by eight cents, or 1.6% at $4.97 shortly after the opening Friday.