Exercise equipment company Peloton (NASDAQ:PTON) will be reporting results tomorrow morning. Here’s what investors should know.
Peloton beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $585.9 million, down 1.6% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates. It reported 2.9 million connected fitness subscribers, down 2.2% year on year.
Is Peloton a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Peloton’s revenue to decline 11.9% year on year to $655.2 million, a further deceleration from the 6.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Peloton has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Peloton’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 4%, meeting analysts’ expectations, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Apple’s stock price was unchanged after the results, while VF Corp was up 1.4%.
Read our full analysis of Apple’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.6% on average over the last month. Peloton is down 16.4% during the same time and is heading into earnings with an average analyst price target of $9.35 (compared to the current share price of $7.31).
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