Exercise equipment company Peloton (NASDAQ:PTON) will be reporting earnings tomorrow before market open. Here’s what to look for.
Peloton beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $643.5 million, flat year on year. It was a mixed quarter for the company, with optimistic EBITDA guidance for the next quarter but revenue guidance for next quarter missing analysts’ expectations.
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 4% year on year to $571.7 million, in line with the 3.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Peloton’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and CBRE reported revenues up 14.8%, topping estimates by 2.7%. Nike traded down 6.8% following the results while CBRE was up 7.7%.
Read our full analysis of Nike’s results here and CBRE’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Peloton is up 56.7% during the same time and is heading into earnings with an average analyst price target of $5.43 (compared to the current share price of $6.80).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
