Shares of connected-camera company Arlo Technologies (NYSE:ARLO) were slammed on Wednesday, falling as much as 45.2%. As of 12:06 p.m. EST, the stock was down 44.4%.
The stock's decline follows Arlo's fourth-quarter update, which included weaker-than-expected guidance. In addition, management warned of slowing market growth and "channel inventory buildup."
Arlo's fourth-quarter revenue was $129.3 million, up 3.6% year over year. Non-GAAP loss per share for the period was $0.33 -- much worse than a non-GAAP profit per share of $0.10 in the year-ago quarter.
While Arlo CEO Matthew McRae called 2018 "a transformational year" in the company's fourth-quarter earnings release, he also said the company "saw the market growth slow significantly late in 2018 which led to channel inventory buildup and both of these factors will affect our growth expectations for 2019."
Management guided for first-quarter revenue between $48 million and $52 million -- far below a consensus analyst forecast (via Yahoo! Finance) for first-quarter revenue of $127 million. In addition, management said it expects its first-quarter non-GAAP loss per share to be between $0.55 and $0.51. Analysts were expecting a narrower first-quarter loss per share of $0.24.