Peloton stationary bike for sale at the company’s showroom in Deadham, Massachusetts, USA, on Wednesday, February 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
Pelaton is going to announce the results of the third financial quarter on Tuesday before the market opens, for the first time for the company’s newly appointed CEO Barry McCarthy.
Here comes the report as the company’s stock price continues to fall. Peloton shares closed at a record low of $ 14.06 on Monday, falling more than 55% this year.
Analysts and investors want to hear firsthand from McCarthy, who has been at the helm of Peloton for about three months, on how he plans to return the business to profitability, keeping costs under control and retaining subscribers.
McCarthy’s recent efforts include reduce the cost of high-end cycles and Peloton treadmillsstriving to make hardware more affordable, and increase monthly membership fees for fully accessible users starting in June.
Here’s what Wall Street expects Peloton to report for the third fiscal quarter based on a survey of Refinitiv analysts:
- Loss per share: 83 cents
- Income: $ 972.9 million
John Blacklage, an analyst at Cowen & Co., said he wants to see how the company is targeting its fourth quarter, including Peloton’s expectations regarding subscriber growth. Peloton has previously said it expects to complete the third quarter with 2.93 million connected fitness subscribers.
Blackledge expects Peloton to slow the number of new subscribers, units sold and revenue from a year earlier, as the manufacturer of connected fitness equipment has to assess what organic consumer demand will look like after the pandemic.
The level of consumer comfort when returning to gyms and other indoor gyms continues to grow, Blackledge told its clients. This, as well as the return of warmer weather, could be a hurdle for the home fitness industry soon, he said.
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