Peloton (PTON) Stock Slumps on Gloomy Holiday Forecast
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Peloton (NASDAQ:PTON) stock is falling on Thursday after the exercise equipment company provided an outlook update for the holidays.
According to Peloton’s latest earnings report, it’s expecting revenue for its fiscal second quarter of 2023 to range from $700 million to $725 million. That’s nowhere close to the $874.01 million Wall Street is expecting for the period. It also represents a 36% drop year-over-year from $1.13 billion.
Peloton says there are a few reasons for its waning revenue guidance. That includes macroeconomic factors that it believes will challenge the near-term demand for its products and services. The company is also dealing with restructuring costs as it works to turn around business.
Fiscal Q1 Results Aren’t Helping PTON Stock
The company notes that revenue for its current quarter came in at $616.5 million. That’s a miss next to Wall Street’s estimate of $650.11 million for the period. It’s also a 23% decrease from the $805.2 million reported in the same period of the year prior.
Adding to that, the company’s losses per share came in at $1.20. That’s another miss compared to analysts’ estimate of -64 cents per share. However, it’s a slight improvement from the -$1.25 per share reported in the same quarter of fiscal 2022.
PTON stock is down 7.9% as of Thursday morning and is down 77.4% year-to-date.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
