- Peloton Interactive Inc PTON shares slide premarket after the company posted weak Q4 earnings after the closing bell on Thursday. It reported EPS of $(1.05), missing the consensus estimate of $(0.45).
- Shares fell by as much as 15% after the closing bell as markets digested lower guidance and a cut in bike prices.
- The company slashed the price of its original stationary bike by 20% as people slowly opt for a gym workout. The lowest-cost Peloton Bike will sell for $1,495, down from $1,895. The higher-priced Bike+ will be sold at $2,495.
- Peloton warned of heightened commodity costs and freight prices looming over the days ahead. It also warned that the upcoming 10-K would show identified material weakness in internal controls over financial reporting related to identification and valuation of inventory,
- The company expects Q1 FY22 sales of about $800 million, much below the consensus estimate of $1.06 billion. It sees 15% FY22 sales to occur in Q1, down from 19% it saw during Q1 FY21.
- Peloton said the U.S. Department of Justice and Homeland Security had subpoenaed the company over reported treadmill injuries. In May, Peloton issued a widespread recall for its treadmill machines, the Tread, and the Tread+, after one child was killed in an accident and dozens of other users reported injuries.
- Peloton shares have fallen about 25% year to date.
- Analyst Reaction: Credit Suisse has maintained the Outperform rating on Peloton but lowered the price target to $148. Needham has maintained the Buy rating but lowered the price target to $130.
- Price Action: PTON shares are trading lower by 6.29% at $106.91 in premarket on the last check Friday.
- Photo by Andrew "Donovan" Valdivia on Unsplash
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PTONPeloton Interactive Inc
$7.625.69%
Edge Rankings
Momentum
90.72
Growth
18.87
Quality
Not Available
Value
30.95
Price Trend
Short
Medium
Long
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