Peloton stock roars as earnings smash estimates, posts first ever profit on coronavirus boost
PTON) on Thursday reported earnings that demolished Wall Street’s expectations, with the company bolstered by the COVID-19 outbreak that shuttered gyms — and kept fitness conscious consumers working out at home. The company said nearly all 103 of its showroom locations have resumed operations.
The company posted a profit for the first time ever, as sales of the company’s high-end bikes and treadmills grew 172% year-over-year. Net income for the fiscal fourth quarter came in at $89.1 million, compared to a net loss of $47.4 million in the same period last year.
Revenue: $607.1 million vs. estimates for $581.1 million
Adjusted earnings per share: $0.27 vs. estimates for $0.116
Connected fitness subscribers: 1.09 million vs. estimates of 1.08 million
Paid digital subscribers: 316,800 vs. estimates of 251,640
FY 2021 revenue (estimate): $3.5 billion to $3.7 billion vs. estimates of $2.7 billion
The home fitness company went from a niche brand with a cult following to one of the biggest winners of the coronavirus pandemic. Peloton also added more subscribers than anticipated.
The stock initially popped more than 5% in after hours trading, and is up 209% so far this year, with the pandemic keeping many gyms closed across the country, which have just started to reopen in certain areas. Meanwhile, subsequent supply constraints and back orders have kept Peloton scrambling to keep up with the surge in demand.
Heading into the quarterly report, analysts overall were feeling bullish on the stock, with 24 buys, two holds, and only one sell rating. Analyst James Hardiman of Wedbush Securities said, “It was an excellent quarter, but that should be a surprise to no one. The story is profitability and EBIDTA guidance for fiscal 2021..exceeding our already bullish forecasts,” James Hardiman of Wedbush Securities told Yahoo Finance.
cutting the price of its signature bike by 15%, from $2,245 to $1,895 and revealing its new $2,495 Bike+ with a rotating screen and easy Apple Watch integration.
Additionally, the company announced its current Tread will be renamed Tread+ and still sell for $4,295. A cheaper Tread will go on sale for $2,495. These additional offerings and price adjustments come as the company continues to expand its customer base, trying to use the slightly lower price as a more accessible, aspirational luxury offering.
acquired by Lululemon (LULU) in June.
@melodyhahm.” data-reactid=”35″>Melody Hahm is Yahoo Finance’s West Coast correspondent, covering entrepreneurship, technology and culture. Follow her on Twitter @melodyhahm.
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