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What's in the Offing for Peloton (PTON) in Q1 Earnings?
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Peloton Interactive, Inc. (PTON - Free Report) is scheduled to report first-quarter fiscal 2021 earnings on Nov 5, after market close. In the last-reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 170%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 13 cents, indicating improvement of 110.1% from a loss of $1.29 reported in the year-ago quarter.
For revenues, the consensus mark stands at nearly $728.1 million, indicating growth of 219.3% from the prior-year quarter.
Let's take a look at how things have shaped up in the quarter.
Peloton’s fiscal first-quarter performance is likely to reflect a surge in demand for its in-house exercise equipment like treadmills and stationary bikes. Markedly, the company is witnessing robust demand owing to solid member engagement among fitness enthusiasts amid the coronavirus pandemic. This along with increased focus on extending manufacturing base with related shipment and delivery, innovation for its fitness product portfolio and new digital content is likely to have boosted the fiscal first-quarter top line. Notably, the company anticipates total revenues in the range of $720 million to $730 million for the to-be-reported quarter, suggesting 218% year-over-year growth at the midpoint.
Meanwhile, the company is optimistic about its connected fitness subscribers business. Notably, it expects subscriber count in the range of 1.32 to 1.33 million, suggesting 135% year-over-year growth at midpoint.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Peloton this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. That is not the case here.
Earnings ESP: Peloton has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +211.11% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Shutterstock
What's in the Offing for Peloton (PTON) in Q1 Earnings?
Peloton Interactive, Inc. (PTON - Free Report) is scheduled to report first-quarter fiscal 2021 earnings on Nov 5, after market close. In the last-reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 170%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 13 cents, indicating improvement of 110.1% from a loss of $1.29 reported in the year-ago quarter.
For revenues, the consensus mark stands at nearly $728.1 million, indicating growth of 219.3% from the prior-year quarter.
Let's take a look at how things have shaped up in the quarter.
Peloton Interactive, Inc. Price and EPS Surprise
Peloton Interactive, Inc. price-eps-surprise | Peloton Interactive, Inc. Quote
Factors at Play
Peloton’s fiscal first-quarter performance is likely to reflect a surge in demand for its in-house exercise equipment like treadmills and stationary bikes. Markedly, the company is witnessing robust demand owing to solid member engagement among fitness enthusiasts amid the coronavirus pandemic. This along with increased focus on extending manufacturing base with related shipment and delivery, innovation for its fitness product portfolio and new digital content is likely to have boosted the fiscal first-quarter top line. Notably, the company anticipates total revenues in the range of $720 million to $730 million for the to-be-reported quarter, suggesting 218% year-over-year growth at the midpoint.
Meanwhile, the company is optimistic about its connected fitness subscribers business. Notably, it expects subscriber count in the range of 1.32 to 1.33 million, suggesting 135% year-over-year growth at midpoint.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Peloton this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. That is not the case here.
Earnings ESP: Peloton has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Peloton, currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +211.11% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>