Exercise equipment company Peloton (NASDAQ: PTON) will be reporting earnings this Thursday morning. Here’s what to look for.
Peloton beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $550.8 million, down 6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates. It reported 2.73 million connected fitness subscribers, down 5.7% year on year.
Is Peloton a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Peloton’s revenue to be flat year on year at $677.2 million, improving from the 9.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
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 15.7%, beating analysts’ expectations by 4.1%, and Sonos reported flat revenue, topping estimates by 1.5%. Apple’s stock price was unchanged following the results.
Read our full analysis of Apple’s results here and Sonos’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Peloton is down 8.3% during the same time and is heading into earnings with an average analyst price target of $10.24 (compared to the current share price of $5.72).
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