Exercise equipment company Peloton (NASDAQ: PTON) will be announcing earnings results this Thursday before market hours. Here’s what to expect.
Peloton missed analysts’ revenue expectations last quarter, reporting revenues of $656.5 million, down 2.6% year on year. It was a satisfactory quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations but full-year revenue guidance missing analysts’ expectations. It reported 2.88 million connected fitness subscribers, flat 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, the market is expecting Peloton’s revenue to be flat year on year, improving from the 13.1% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Peloton’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sonos delivered year-on-year revenue growth of 8.4%, beating analysts’ expectations by 5.5%, and Apple reported revenues up 16.6%, topping estimates by 1.7%. Sonos traded down 5.9% following the results while Apple was up 3.2%.
Read our full analysis of Sonos’s results here and Apple’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 6% on average over the last month. Peloton is up 10.9% during the same time and is heading into earnings with an average analyst price target of $7.88 (compared to the current share price of $5.16).
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