How Seat-Post Recalls, App Relaunch, And Expenditure Shifts Shape Peloton's Future, According To This Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Bernie McTernan reiterated a Buy rating on Peloton Interactive, Inc. (PTON) with a price target of $10. PTON reported a Q4 FY23 sales decline of 5% YoY to $642.1 million, beating the consensus of $639.9 million. However, EPS loss was $(0.68), missing the consensus loss of $(0.38). The analyst notes that lower-than-expected revenue and the reclassification of capex to R&D pressured Q1 guidance. Peloton sees Q1 FY24 revenue of $580 million - $600 million, representing a decline of 4% YoY and 8% QoQ at the midpoint. PTON shares are trading lower by 23.3% to $5.37.
August 23, 2023 | 7:17 pm
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NEGATIVE IMPACT
Peloton's Q4 FY23 sales declined but beat consensus, while EPS loss missed consensus. Q1 FY24 revenue guidance is pressured by lower revenue and capex reclassification. PTON shares are trading lower.
Peloton's Q4 sales beat consensus, which is positive. However, the EPS loss was greater than expected, which is negative. The company's Q1 FY24 revenue guidance is also lower than expected due to lower revenue and the reclassification of capex to R&D, which is negative. These factors, along with the overall market sentiment, have led to a decrease in PTON's share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100