Peloton Interactive, Inc. PTON is gearing up to unveil its fourth-quarter fiscal 2024 results on Aug 22, signaling a crucial pit stop before the market opens. The previous quarter saw the company’s earnings veer off course, missing the Zacks Consensus Estimate by a considerable 15.4%.
Estimate Revision Roadmap
Estimates peg the fourth-quarter loss per share at 18 cents, a significant improvement from the 68-cent loss reported in the same period last year. Revenue projections stand at $626.3 million, hinting at a 2.5% dip from the figures recorded a year ago.
Heading into the Curve: Potential Influences
Peloton is set for a potential revenue decline in the upcoming quarter compared to last year, triggered by reduced Connected Fitness Products income and increased churn in Connected Fitness subscriptions. Despite these challenges, strategic partnerships and growth initiatives are expected to have helped offset the negative impact. The company’s global expansion focus might have acted as a tailwind amidst the storm.
Estimates for Connected Fitness Products revenue are currently $193.9 million, indicating a 12% slump from the prior year. On the flip side, subscription revenue is anticipated to rise by 3% to hit $434.3 million.
Moreover, the expected narrowing of loss per share presents a silver lining, attributed to Peloton’s diligent cost-cutting measures.
Unveiling the Forecast: Zacks Model Insights
Insights from the Zacks model cast doubt on a potential earnings beat for Peloton this time around. The current negative Earnings ESP of -37.59% alongside a Zacks Rank #3 suggests challenging road conditions ahead for the company.
Earnings ESP: Peloton’s Earnings ESP depicts a concerning -37.59% statistic at present.
Zacks Rank: The company holds a Zacks Rank #3 currently, painting a cautious outlook on the upcoming results.
Accelerating Ahead: Stock Picks With Potential
Other contenders come into focus as potential winners this season, with Ollie’s Bargain showcasing an Earnings ESP of +2.38% and a Zacks Rank of 3. The company positions itself for a strong performance in the upcoming quarter, with earnings per share expected to leap by 16.4% from the previous year.
Burlington Stores and Costco Wholesale Corporation also stand out, with positive Earnings ESP figures of +5.62% and +0.89% respectively, and Zacks Rank 3 designations. Both firms are poised for growth in revenues and earnings, showcasing potential prosperity ahead.
The blend of estimation upgrades and strategic maneuvers positions these companies as frontrunners amidst the competitive landscape.