Peloton Shares Drop 10.6% in After Hours Trading With Worse-Than-Expected Quarterly Loss

AP News  |

Video source: YouTube, CNBC Television

Peloton’s shares skidded in aftermarket trading Thursday after the exercise bike and treadmill company posted a loss for its most-recent quarter, showed slower revenue growth, and cut the price of its most popular product.

Peloton Interactive Inc. reported a net loss of $313.2 million in the quarter that ended June 30. That compared to a profit of $89.1 million the same period last year. A portion of the latest quarter’s loss stemmed from the company having to recall its treadmill machine after it was linked to a death of a child and numerous injuries.

The quarterly loss amounted to $1.05 a share. Wall Street analysts had been expecting a loss of 44 cents a share, according to FactSet.

Peloton’s revenue in its fiscal fourth quarter totaled $936.9 million. That was better than the $928.6 million expected by analysts.

But the company said expects revenues in the current fiscal first quarter of $800 million, well short of analysts’ forecasts of $1 billion.

New York-based Peloton’s stock plummeted 10.6% in after-hours trading.

Peloton was one the pandemic’s success stories, as quarantined Americans bought at-home exercise equipment as a way to stay fit. But its success has bred additional competitors, who now sell cheaper bicycles and exercise equipment. In addition, many high-end gyms are offering virtual classes that once were Peloton’s biggest draws.

Profiting From Energy Efficient Cryptocurrency Mining

The company announced Thursday that it is cutting the price of its Peloton Bike — the product that was the cornerstone of its popularity — to $1,495 from $1,895. It will also offer additional financing options for those wanting to purchase the bike. The move could be seen as either a sign Peloton wants to broaden its customer base, or that demand for its products is waning.

While the company reported a 54% rise in revenue from last year, the pace of that revenue growth and appears to be slowing. In the previous three-month period, its revenue grew 141%.


Sources: AP News, CNBC Television

Trending Articles

Profiting From Energy Efficient Cryptocurrency Mining
Is AI Ready for Prime Time: Jeff Kagan
Stocks Close Broadly Lower as Powell Signals Faster Tapering by Fed
UK Regulator Rules Facebook Must Sell Giphy
US Bank Profits Slip 1.2% in Q3
Omicron Variant Reached Europe Earlier Than Previously Thought
Vaccine Stocks Soar Amid Omicron-Related Volatility
Former Trump Chief of Staff Mark Meadows To Cooperate With House Panel Investigating Jan. 6 Insurrection

Market Movers

Sponsored Financial Content