Exercise equipment company Peloton (NASDAQ: PTON) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
Peloton beat analysts’ revenue expectations last quarter, reporting revenues of $607.7 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and revenue guidance for next quarter missing analysts’ expectations. It reported 2.55 million connected fitness subscribers, down 8.8% 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 6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Peloton rarely misses Wall Street’s revenue estimates.
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. Apple delivered year-on-year revenue growth of 11.7%, beating analysts’ expectations by 0.8%, and Hilton Grand Vacations reported revenues up 50.8%, topping estimates by 39.5%. Apple traded down 1.9% following the results while Hilton Grand Vacations was up 8.2%.
Read our full analysis of Apple’s results here and Hilton Grand Vacations’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.7% on average over the last month. Peloton is up 6.4% during the same time and is heading into earnings with an average analyst price target of $7.70 (compared to the current share price of $5.32).
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