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: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical Tension
The main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's Chrome
Alphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
Why Walmart Stock's a Buy After Its Beat-And-Raise QuarterWalmart is the best Dow Jones stock Tuesday after the retail giant's solid earnings report and outlook and Wall Street thinks it's just getting started. Here's what they're saying.
-
Winners and Losers of Fed Rate CutsNavigating interest-rate changes can seem daunting, but these areas of the fixed-income market could perform better (or worse) than others.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
How Preferred Stocks Can Boost Your Retirement PortfolioHigher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
