Peloton Interactive Expects Continued Sales Headwinds In Q1 Due To Uncertain Macroeconomic Environment; Sees Q1 Total Revenue Of $560M - $580M, Est $609M
Portfolio Pulse from Benzinga Newsdesk
Peloton Interactive anticipates sales challenges in Q1 due to macroeconomic uncertainties, projecting revenue between $560M and $580M, below estimates. The company expects a decline in hardware sales and is reducing marketing spend to focus on profitability. Despite this, Peloton foresees an increase in gross margin and improved EBITDA due to cost reductions.
August 22, 2024 | 11:13 am
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Peloton Interactive expects Q1 revenue of $560M-$580M, below the estimated $609M, due to macroeconomic challenges and a decline in hardware sales. The company is reducing marketing spend to focus on profitability, which may impact sales but improve gross margin and EBITDA.
Peloton's revenue forecast is below estimates, indicating potential short-term negative impact on stock price. The reduction in marketing spend and focus on profitability may lead to improved margins but could also result in lower sales, contributing to the negative outlook.
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