Earnings

Peloton shares fall 24% as company posts wider-than-expected loss and slashes full-year outlook

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A Peloton Bike
Shannon Stapleton | Reuters

Peloton is set to report its fiscal first-quarter financials after the market closes on Thursday.

Here’s what analysts polled by Refinitiv are expecting:

  • Loss per share: Loss of $1.07, adjusted
  • Revenue: $810.7 million

Beyond the quarterly results, investors will be paying close attention to any guidance that Peloton gives for its current fiscal year.

Bank of America Securities analyst Justin Post noted to his firm’s clients ahead of Thursday’s report that the key things Wall Street will be listening for on the conference call are comments around consumer demand for Peloton’s Tread treadmill machine, discussions of churn rates and continued hints that new products are coming down the pipe.

To manage supply chain issues, the company has invested in air freight to move products from overseas, with U.S. ports backlogged and cargo containers hard to come by. It also bought Precor, another fitness equipment maker that already had production facilities in the U.S., giving Peloton access to those for making its own bikes and treadmills.

Meantime, Peloton has ramped up marketing in recent months to advertise its now cheaper-priced Bike product as well as its redesigned Tread, following a treadmill recall. There were dozens of reports of injuries and one child’s death related to its Tread+ machine, and reports of the touchscreen falling off its Tread.

Investors will want to hear how consumers are responding to the cost reduction and recent marketing campaigns.

Peloton shares have fallen about 43% year to date. The company’s market cap is $26.3 billion.

This story will be developing. Please check back for updates.

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