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Peloton (PTON) to Report Q3 Earnings: What's in the Offing?

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Peloton Interactive, Inc. (PTON - Free Report) is scheduled to report third-quarter fiscal 2022 results on May 10, after the closing bell. In the last reported quarter, the company posted an earnings miss of 17.8%.

Q3 Estimates

The Zacks Consensus Estimate for the company’s fiscal third-quarter bottom line is pegged at a loss of 83 cents per share, suggesting a wider loss than the prior-year quarter’s 3 cents. The consensus mark for revenues stands at nearly $976.1 million, which indicates a decline of 22.7% from the prior-year quarter.

Factors to Note

Peloton’s fiscal third-quarter performance is likely to have benefited from an increase in digital and connected fitness subscribers. Moreover, the rise in demand for its in-house exercise equipment like Bike and Bike+ bodes well. Digital subscriptions are likely to have driven connected fitness products backed by new fitness modalities and class varieties.

The Zacks Consensus Estimate for subscription revenues is pegged at $360 million, up from the prior-year quarter’s reported figure of $239 million. Meanwhile, the consensus estimate for connected fitness product revenues stands at $654 million, calling for a decline of 36.1% year over year.

Increased focus on extending its manufacturing base with related shipment and delivery, innovation for its fitness product portfolio and the new digital content have likely contributed to the fiscal third-quarter top line. However, the increase in costs is likely to have negatively impacted the company’s top line in the quarter.

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 the Zacks Model Unveils

Our proven model doesn’t 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 chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Peloton has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Stocks Poised to Beat Earnings

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 post an earnings beat:

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +22.68% and a Zacks Rank #2.

Shares of Planet Fitness have declined 4.3% in the past year. PLNT’s earnings surpassed the consensus mark once in the trailing four quarters, matched once and missed twice, the average surprise being 0.3%.

The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.

Shares of Disney have declined 40.2% in the past year. DIS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 67.8%.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +2.87% and a Zacks Rank #3.

Shares of Choice Hotels have gained 14.5% in the past year. CHH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 15.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.