Earnings

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A Peloton stationary bike for sale at the company’s showroom in Dedham, Massachusetts, U.S., on Wednesday, Feb. 3, 2021.
Adam Glanzman | Bloomberg | Getty Images

Peloton is set to report its fiscal third-quarter results Tuesday before the market open, a first for the company’s recently appointed Chief Executive Officer Barry McCarthy.

The report also comes as the company’s share price keeps tumbling. Peloton’s stock closed at an all-time low of $14.06 on Monday, having fallen more than 55% this year.

Analysts and investors want to hear first-hand from McCarthy, who has been at the helm of Peloton for about three months, about how he plans to return the business to profitability by keeping costs in check and retaining subscribers.

McCarthy’s recent efforts include slashing the cost of Peloton’s high-end cycles and treadmill machines, in a bid to make the hardware more affordable, and hiking monthly membership fees for all-access users beginning in June.

Here’s what Wall Street is expecting Peloton to report for its fiscal third quarter, based on a survey of analysts by Refinitiv:

  • Loss per share: 83 cents
  • Revenue: $972.9 million

John Blackledge, an analyst at Cowen & Co., said he is eager to see how the company guides for its fourth quarter, including Peloton’s expectations for subscriber growth. Peloton has said previously it expected to end its third quarter with 2.93 million connected fitness subscribers.

Blackledge anticipates Peloton will see a deceleration in net new subscribers, units sold and revenue compared with a year earlier, as the connected fitness equipment maker must gauge what organic consumer demand is going to look like post-pandemic.

Consumers’ comfort levels for returning to gyms and other indoor fitness activities continues to rise, Blackledge noted to clients. That, plus the return of warmer weather, could pose headwinds for the at-home fitness industry in the near term, he said.

This story is developing. Please check back for updates.

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