Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

Peloton shares fall 23% as company posts wider-than-expected loss and slashes full-year outlook

by
November 4, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

FCC denies SpaceX bid for nearly $1 billion in rural broadband subsidies for Starlink

The easing of inflation pressures is giving the economy some breathing room, for now

Jen Van Santvoord rides her Peloton exercise bike at her home on April 07, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Peloton shares tumbled more than 20% Thursday after the company reported weakening sales growth and a wider-than-expected loss in its fiscal first quarter.

The company slashed its outlook for the full year amid softened demand for its exercise equipment and ongoing supply chain challenges.

“We anticipated fiscal 2022 would be a very challenging year to forecast, given unusual year-ago comparisons, demand uncertainty amidst re-opening economies, and widely-reported supply chain constraints and commodity cost pressures,” Chief Executive Officer John Foley said in a letter to shareholders.

A slower-than-expected start to the second quarter and “challenged visibility” in the near term led the company to lower its expectations, Foley said.

Here’s how Peloton did in its fiscal first quarter compared with what analysts polled by Refinitiv were expecting:

Loss per share: $1.25 vs. $1.07 expected Revenue: $805.2 million vs. $810.7 million expected

For the three-month period ended Sept. 30, Peloton reported a net loss of $376 million, or $1.25 per share, compared with net income of $69.3 million, or earnings of 20 cents a share, a year earlier. Analysts had been looking for Peloton to post a loss of $1.07 per share.

Revenue grew 6% to $805.2 million from $757.9 million a year earlier, missing estimates for $810.7 million.

That marked a significant slowdown from the 250% surge in sales that Peloton booked in the first quarter of 2020, when consumers were eager to get their hands on at-home bikes to workout when gyms were closed.

Sales of connected fitness products including its Bikes and Treads fell 17% to $501 million. Subscription revenue grew 94% to $304.1 million. Connected fitness sales accounted for 62% of Peloton’s business in the quarter.

Peloton counted 2.49 million connected fitness subscribers at the end of the three-month period, up 87% year over year. Connected fitness subscribers are people who own a Peloton product and also pay a monthly fee for access to the company’s digital workout content.

Its entire member base, which includes digital-only subscribers, totaled 6.2 million.

Average net monthly connected fitness churn, which Peloton uses to measure retention of connected fitness subscribers, ticked up to 0.82% from 0.73% in the prior quarter.

Connected fitness subscribers completed 16.6 workouts per month, on average, a drop from 20.7 workouts a year earlier.

Sales and marketing expenses surged 148% to $284.3 million, representing roughly 35% of revenue. The company has poured dollars into advertising its now less-expensive Bike product and Tread treadmill machine. The latter was just recently put back on sale in the U.S. following a widespread recall.

Due to the uncertain nature of the pandemic, Peloton said it is now presenting its outlook in ranges, rather than single estimates.

It sees its connected fitness subscriber count growing to between 2.8 million and 2.85 million in the second quarter. Sales are forecast between $1.1 billion and $1.2 billion. Analysts were looking for $1.5 billion.

Peloton added that it expects a “healthy” holiday season, now that it has adequate inventory to meet demand and normal delivery windows.

For the fiscal year, it slashed its expectations for subscribers and sales. It now anticipates connected fitness subscribers to amount to between 3.35 million to 3.45 million, down from a prior outlook of 3.63 million. It sees revenue ranging between $4.4 billion to $4.8 billion, down from $5.4 billion. Analysts’ consensus was for $5.39 billion.

“The primary drivers of our reduced forecast are a more pronounced tapering of demand related to the ongoing opening of the economy, and a richer than anticipated mix of sales to our original Bike,” the company said.

Peloton added that, in conjunction with its revised forecast, it will be looking at its expense base and adjusting operating costs to better align investments with the new growth expectations.

Peloton shares have fallen 43% year to date, as of market close Thursday. The company’s market cap is about $26 billion.

This story is developing. Please check back for updates.

ShareTweetPin

Related Posts

FCC denies SpaceX bid for nearly $1 billion in rural broadband subsidies for Starlink

by
August 10, 2022
0

A Starlink satellite terminal, also known as a dish, setup in front of an RV. SpaceX The Federal Communications Commission...

The easing of inflation pressures is giving the economy some breathing room, for now

by
August 10, 2022
0

A shopping cart is seen in a supermarket as inflation affected consumer prices in Manhattan, New York City, U.S., June...

Homebuyers Hit Brakes in July, Sellers Hold Back

by
August 10, 2022
0

by Calculated Risk on 8/10/2022 01:15:00 PM Today, in the Calculated Risk Real Estate Newsletter: Homebuyers Hit Brakes in July,...

U.S. charges Iranian military operative in plot to assassinate former Trump advisor John Bolton

by
August 10, 2022
0

National Security Advisor John Bolton answers questions from reporters as he announces that the U.S. will withdraw from a treaty...

Stocks making the biggest moves midday: Coinbase, Roblox, Wendy’s and more

by
August 10, 2022
0

Check out the companies making headlines in midday trading. Coinbase reported a 27% decline in revenues in the first quarter...

Next Post

Peloton shares fall 25% as company posts wider-than-expected loss and slashes full-year outlook

Uber revenue up 72% from last year, but Didi stake contributes to big loss

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com