Peloton Interactive (PTON) stock is trading notably higher in Thursday's session after the connected fitness company beat top- and bottom-line expectations for its fiscal fourth quarter.
In the three months ended June 30, Peloton's revenue increased 0.2% year-over-year to $644 million, marking its first annual revenue growth since the second quarter of its fiscal 2022. The company's net loss per share narrowed to 8 cents from 68 cents in the year-ago period.
"We ended the 2024 fiscal year with strong Q4 performance, meeting or exceeding our guidance on all key metrics and making continued progress on a number of our financial goals," Peloton said. "With a stable financial foundation now in place, we can focus on innovation in a more strategic way, enhancing our Member experience and driving sustainable, profitable growth over the long term."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company's results handily beat analysts' expectations. Wall Street was anticipating revenue of $631 million and a net loss of 17 cents, according to CNBC.
Here's what Peloton expects to accomplish in the first quarter and full year of fiscal 2025:
| Metric | Q1 2025 | FY 2025 |
|---|---|---|
| Revenue | $560 million to $580 million | $2.4 billion to $2.5 billion |
| Adjusted EBITDA | $50 million to $60 million | $200 million to $250 million |
For the first quarter of PTON's fiscal 2025, analysts anticipate revenue of $609 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $45 million. While the company's revenue forecast is below the Street's expectations, its higher EBITDA outlook reflects a focus on long-term profitable growth.
For the full-year, analysts are calling for revenue of $2.7 billion.
Is Peloton stock a buy, sell or hold?
Peloton has put Wall Street through the wringer since its pandemic peak. This year alone, shares are down nearly 29% – including Thursday's post-earnings surge. Unsurprisingly, Wall Street is on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the consensus analyst target price for PTON stock is $4.75, representing implied upside of more than 14% to current levels. Meanwhile, the consensus recommendation is a Hold.
Financial services firm UBS Global Research is even more bearish on the stock, with a Sell rating and a $2.50 price target.
"We believe consistent momentum in positive growth in total interactive visits could signal traction in demand, but we are also mindful of seasonal promotional activity that could temporarily impact these metrics over shorter periods," wrote UBS analyst Arpine Kocharyan in an August 13 note. "We believe investors remain focused on 2025 connected fitness subscription growth, especially as it becomes evident that the tiered app membership approach and the relaunched app did not drive the conversion to connected fitness many were expecting."
Related Content
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
Why Abolishing Florida Property Taxes is ProblematicProperty Taxes A bold proposal that aims to eliminate property taxes in the Sunshine State has roused concerns from economists, and rightly so.
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
10 Ways to Refine Your Financial Plan for a More Secure FutureSignificant benefits throughout the rest of the year can be had if you take some time now to revisit your financial plan and adjust accordingly.
-
The Most Important Number for a Business Owner Considering a SaleCompany owners hoping to sell and stop working won't know whether an offer on their business is good enough unless they know their 'wealth gap.'Evan
-
Stock Market Today: Dow Drops 670 Points on Trade War EffectA prodigious rally by the battered leader of the AI revolution typified an increasingly volatile picture for investors, traders and speculators.
-
Dividing an Estate? Five Ways to Create TransparencyLetting your children know your intentions while you're still around to explain your reasoning, and while you can make adjustments, can limit discontent later.
-
College Grads: This Is What Hiring Managers Are Thinking (But Won't Admit)Hiring managers share the attitudes, questions and other issues that could turn off an interviewer — and some of these things they would never admit if asked.
-
Stock Market Today: Markets Count Down to Tariff DayInvestors, traders and speculators stand by for updates from Washington, D.C., on new terms of global trade.
-
Why ETFs Are a Great Bet for the Trump PresidencyStock market volatility has picked up since Inauguration Day. These ETFs can help investors can navigate the ups and down.
