Zinger Key Points
- Peloton stock is down over 40% year-to-date in 2024.
- The company's fourth-quarter financial results could highlight a continued turnaround plan and company partnerships.
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Exercise equipment company Peloton Interactive Inc PTON is expected to provide an update on several initiatives — including the search for a new CEO and turnaround plan — when fourth-quarter financial results are reported Thursday before the market opens.
Earnings Estimates: Analysts expect Peloton to report fourth-quarter revenue of $630.48 million, according to data from Benzinga Pro.
The estimate is below last year's fourth-quarter revenue of $642.1 million.
Peloton has beaten analyst estimates for revenue in five of the last six quarters and five of the last 10 quarters overall.
Analysts expect the company to report a loss of 17 cents per share, improving on last year's loss of 68 cents per share in the fourth quarter. The company has missed earnings estimates from analysts in more than 10 straight quarters.
Peloton lowered its full-year revenue outlook to a mid-point of $2.687 billion when it reported third-quarter financial results.
Read Also: The $2,000 Bike That Can’t Move – Is The Peloton Fad Officially Over?
Key Items To Watch: One of the key items analysts and investors will be watching in Peloton's report and commentary is an update on the search for a new CEO.
Earlier this year, peloton announced CEO Barry McCarthy was stepping down with interim co-CEOs taking over while a permanent replacement is found. The company has not shared news of a new CEO to date.
Peloton also announced a restructuring program that included eliminating jobs. The company said the plan could help reduce expenses by an annual run-rate of more than $200 million by the end of the next fiscal year.
An update on the plan's progress and the cost savings could also help provide some positivity for investors.
In May, Peloton completed a refinancing effort with the sale of convertible senior notes. The details of this plan could also be among the key topics discussed in the company's turnaround plan.
Peloton announced a partnership with Lululemon in September 2023 and a new partnership with Alphabet Inc GOOGGOOGL unit Fitbit recently. The partnerships could help provide new revenue opportunities for the companies and could be key topics discussed by the company or from analyst questions.
The new Fitbit partnership will see Fitbit Premium members get access to Peloton classes beginning in September. Peloton members will also get special offers for Google Pixel Watch and Fitbit devices as part of the partnership.
"We're thrilled to bring Peloton's classes and world-class Instructors to Fitbit users, and continue to establish Peloton as a one-stop shop for all types of fitness content," Peloton for Business General Manager Greg Hybl said.
Investors and analysts will want to see and hear how the partnerships are helping boost revenue and profitability alongside gaining new members.
JPMorgan analyst Doug Anmuth highlighted Peloton as a company that could see a positive ripple effect from being part of Amazon's Prime Day July 16 and July 17 with discounts of around 30% offered on products.
PTON Price Action: Peloton shares trade at $3.28 versus a 52-week trading range of $2.70 to $7.24. Peloton stock is down 46% year-to-date in 2024 as seen on the Benzinga Pro chart below.
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