Exercise equipment company Peloton (NASDAQ: PTON) will be reporting results this Thursday before market open. Here’s what to look for.
Peloton beat analysts’ revenue expectations last quarter, reporting revenues of $630.9 million, up 1.1% year on year. It was a mixed quarter for the company, with full-year revenue guidance meeting analysts’ expectations but full-year EBITDA guidance missing analysts’ expectations. It reported 2.66 million connected fitness subscribers, down 7.6% 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 decline 1.8% year on year, improving from the 5.7% 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 Q2 results, giving us a hint as to what we can expect. Sonos delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 2.5%, and Apple reported revenues up 16.4%, topping estimates by 1.1%. Sonos traded down 17.6% following the results while Apple was also down 7.3%.
Read our full analysis of Sonos’s results here and Apple’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Peloton is up 12.2% during the same time and is heading into earnings with an average analyst price target of $8.09 (compared to the current share price of $6.59).
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