Peloton (PTON) Q2 Earnings: What To Expect

Exercise equipment company Peloton (NASDAQ:PTON) will be reporting results tomorrow before market open. Here’s what investors should know.

Peloton met analysts’ revenue expectations last quarter, reporting revenues of $717.7 million, down 4.2% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.

Is Peloton a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Peloton’s revenue to decline 2.3% year on year to $627.4 million, improving from the 5.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Peloton has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Peloton’s peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Harley-Davidson delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 27.2%, and Latham reported a revenue decline of 9.6%, topping estimates by 2.2%. Harley-Davidson traded up 8.7% following the results while Latham was also up 42%.

Read our full analysis of Harley-Davidson’s results here and Latham’s results here.

Growth stocks have seen elevated volatility as investors debate the Fed’s monetary policy, and while some of the leisure products stocks have fared somewhat better, they have not been spared, with share prices down 3.3% on average over the last month. Peloton is down 10.3% during the same time and is heading into earnings with an average analyst price target of $4.8 (compared to the current share price of $3.22).

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