Peloton Earnings Preview: PTON misses earnings estimates
- Peloton earnings are due Thursday before the market opens.
- PTON stock jumps 20% on Wednesday to $13.48.
- Peloton reaches a deal to sell its products on Amazon.
Update: Peloton has missed on the top and bottom lines. EPS came in well behind at -$3.68. Revenue came in at $678.7 million versus a consensus of $683. The guidance also looks much lower than forecast. PTON stock is down in premarket trading by nearly 14%
Peloton (PTON) stock has taken investors on a bumpy ride this year with smooth tarmac not in the cards as the stock fell 60% year to date. The former retail favorite was a massive beneficiary of the pandemic as lockdown consumers fresh with stimulus cash splurged on the machines to keep fit in their own homes.
Also read: Amazon Stock Deep Dive: AMZN price target at $106 with near-term risks offset by long-term growth
Peloton stock news
The move on Wednesday was down to Peloton announcing that some of its products are now available to purchase on Amazon's US site. The Peloton bike guide and some other accessories will all be available on Amazon. This does broaden the availability of Peloton's reach, but with earnings due this move may have been exaggerated.
Peloton has been suffering from the pandemic reopening with declining sales and subscription growth. PTON stock so far is down 60% and is nearly 90% off its highs. Peloton has a new CEO in place and is embarking on a cost-cutting restructuring plan including job losses and ending in-house manufacturing. Earnings will be important, but so too will be further plans from the new CEO on how this restructuring is progressing. Peloton is expected to post earnings per share (EPS) of $-0.77 and revenue of $683 million. Earnings are out before the open on Thursday, and we will update this article as soon as we get them.
Peloton stock forecast
Peloton stock is obviously in a powerful downtrend. $14.34 is the first resistance, and breaking this could speed up the move higher due to the volume gap above here. To do so, however, earnings and outlook will need to be positive. Cost cutting is probably the biggest factor rather than earnings themselves. The 200-day moving average at $24 will be the first target for PTON stock on a break of $14.34.
Peloton 8-hour chart
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
