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Peloton (PTON) to Report Q4 Earnings: What's in the Offing?

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Peloton Interactive, Inc. (PTON - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Aug 26, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 72.7%.

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter bottom line is pegged at a loss of 45 cents per share, against an earnings of 27 cents reported in the prior-year quarter. The consensus mark for revenues stands at nearly $925.4 million, which suggests growth of 52.4% from the year-ago reported figure.

Factors to Note

Peloton’s fiscal fourth-quarter performance is likely to have benefited from a surge in demand for its in-house exercise equipments like Bike and Bike+, and purchase of Precor, which was sealed in April. Increased production and expedited transportation of its products might have contributed to the to-be-reported quarter’s top line. The company anticipates higher sales on the back of reduced prices and increasing acceptance for Bike+. It expects Global Bike and Bike+ unit sales in the fiscal fourth quarter to be more than three times higher than fourth-quarter fiscal 2019.

Increased focus on extending manufacturing base with related shipment and delivery, innovation for its fitness product portfolio and new digital content may get reflected in the fiscal fourth-quarter top line.

The company is optimistic about its connected fitness subscribers and digital products. As of Mar 31, 2021, it had over 5.4 million global members inclusive of nearly 891,000 digital subscribers. In the last reported quarter, Peloton added 414,000 net connected fitness subscriptions. Going forward, it expects digital subscriptions to be a major growth driver for connected fitness products on the back of new fitness modalities and class varieties.

However, port congestion issues and COVID-related delivery challenges are likely to have negatively impacted product delivery windows in the fiscal fourth quarter. This along with high costs may have weighed on margin.

Peloton Interactive, Inc. Price and EPS Surprise Peloton Interactive, Inc. Price and EPS Surprise

Peloton Interactive, Inc. price-eps-surprise | Peloton Interactive, Inc. Quote

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Peloton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's 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, which shares space with Planet Fitness, Inc. (PLNT - Free Report) , Vista Outdoor Inc. (VSTO - Free Report) and Acushnet Holdings Corp. (GOLF - Free Report) , currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.