Peloton Interactive, Inc. PTON shares are trading lower Thursday after the company reported worse-than-expected third-quarter results, announced a CEO transition and announced a 15% global workforce reduction.
The Details:
Peloton reported quarterly losses of 45 cents per share which missed the analyst consensus estimate of losses of 36 cents by 25%. Quarterly sales came in below analysts' estimates at $717.7 million, representing a 4.17% decrease from the same period last year.
The company announced CEO Barry McCarthy will step down and Karen Boone and Chris Bruzzo, will serve as Interim Co-CEOs while the company searches for a permanent replacement.
Peloton announced a restructuring program to include a reduction to its global headcount by approximately 15%, impacting roughly 400 Peloton team members. The company will also continue reducing its retail footprint and redesign its international go-to-market approach to be more targeted and efficient.
Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.
Additionally, Peloton lowered its full-year revenue outlook by $25 million, or 1%, at the guidance midpoint to $2.687 billion.
Several analysts lowered their price targets on the stock following the print:
- Roth MKM maintained DoorDash with a Neutral and lowered the price target from $121 to $118.
- Oppenheimer maintained an Outperform rating and lowered the price target from $150 to $125.
- JMP Securities maintained its Market Outperform rating and lowered the price target from $160 to $140.
- RBC Capital analyst Brad Erickson maintained DoorDash with an Outperform and lowered the price target from $175 to $165.
- BMO Capital analyst Brian Pitz maintained an Outperform rating and lowered the price target from $138 to $127.
Related News: Enovix Stock Soars On Blockbuster Q1 Sales
PTON Price Action: According to Benzinga Pro, Peloton Interactive shares are down 4.04% at $3.09 at the time of publication Thursday.
Image: nyker from Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.