Peloton (PTON) raised profit guidance for the full year after beating revenue estimates for its fiscal first quarter. Peloton stock rocketed to a new high on Thursday.
The bike, treadmill and rowing machine maker also said it has appointed Peter Stern, a Ford (F) executive and the co-founder of Apple (AAPL) Fitness+, to be its next CEO. Stern takes the reins at Peloton on Jan. 1.
Peloton Earnings
For fiscal Q1, Peloton narrowed losses to 17 cents per share, but that was two cents wider than expected, according to FactSet. Revenue fell nearly 2%, year over year, to $586 million, slightly ahead of analyst views. That drop continued a nearly uninterrupted string of sales declines since Q3 2022.
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The company also gave disappointing revenue guidance for the key holiday quarter. However, for fiscal 2025, Peloton is now targeting adjusted EBITDA of $240 million-$290 million vs. $200 million-$250 million previously. That would be up from $3.5 million last fiscal year. It cited expanding margins and cost savings.
The company guided full-year revenue of $2.4 billion-$2.5 billion, in line with analyst views for $2.46 billion, according to FactSet. But that would be a 9% decline from fiscal 2024. Peloton’s fiscal year ends in June.
Peloton Stock
Shares gapped up 28.1% in huge volume on the stock market today. Peloton stock hit its highest level since August 2023.
The stock remains far below the post-IPO high struck in January 2021.
Ahead of the Q1 report, Peloton partnered with Costco (COST) to sell its Bike+ in 300 Costco U.S. stores and on the Costco website.
With sales falling and losses continuing, Peloton hopes to attract new and younger customers.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
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