Peloton Interactive (NASDAQ:PTON)
On Thursday, August 25th, before the market opens, Peloton Interactive (NASDAQ:PTON) will report financial results for the fiscal year’s final quarter and the entire year of 2022.
Revenue is predicted to be $682.93M (-27.1% Y/Y), while earnings per share are predicted to be -$0.77.
We have observed zero favorable and one adverse modification to EPS estimates over the past three months. One upward revision and five downward revisions have been made to revenue projections.
Shares of Peloton Interactive (NASDAQ:PTON) have been under pressure since the business reported poor financial results for the third quarter (FQ3) and offered a disappointing forecast in May, both of which drew attention to slowing subscriber growth.
At the close of the fiscal third quarter, the provider of interactive fitness goods had 976K digital members, up from 891K a year ago and 862K in the previous quarter. Annual net additions of linked fitness subscriptions dropped 53% to 195,000 in FQ3, and average monthly workouts per subscription dropped 28%.
Peloton Interactive (NASDAQ:PTON) is one of many work-at-home stocks that has taken a hit due to more people heading back to the office and growing inflation, forcing many to cut back on discretionary spending in favour of necessities.
Since founder John Foley stepped down as CEO at the beginning of the year, the company has been undergoing a massive round of restructuring. Today, Amazon (AMZN) announced that the Peloton Bike, Guide, and certain accessories and clothes would be sold in its U.S. stores, with nationwide bike delivery.
The partnership should help Peloton reach a wider audience and rapidly connect with potential Members among the brand’s millions of current users through a new distribution channel.
Peloton has announced it will cease all in-house production to further reduce expenses. According to Geetha Ranganathan, an analyst at Bloomberg Intelligence, the company may be able to save $800 million annually in costs by making this change before FY 2024.
The New York-based company’s stock price has shown strength recently, rising by more than 30% in tandem with the market. Despite this, Peloton is still down by roughly 63% Year-to-Date due to worries about debt and waning post-pandemic demand.
A 784-person layoff was announced earlier this month, and product prices were increased as part of the company’s ongoing effort to increase profitability.
Newly appointed CFO Liz Coddington will make her first appearance in the upcoming report. Amid this change, analyst Gary Alexander sees opportunity, declaring that “this is Peloton’s bounce moment” in a recent study.
In addition, Citi expects the revised Peloton Interactive (NASDAQ:PTON) strategy to increase gross margins and free cash flow.
Featured Image: Megapixl @Michaelvi
Author Shariq Khan 
