Peloton Earnings: PTON Stock Pushes 7% Higher on Strong Q4, Guidance

Peloton (NASDAQ:PTON) earnings for the exercise company’s fiscal fourth quarter of 2020 have PTON stock on the rise after hours on Thursday. That’s due to its diluted earnings per share of 27 cents, which is better than Wall Street’s estimate of 10 cents. The company’s revenue of $607.1 million also blows past analysts’ estimates of $582.51 million.

A Peloton (PTON) store front
Source: Sundry Photography / Shutterstock.com

Now, let’s see what else went right for Peloton in its most recent earnings report.

  • Diluted per-share earnings are a massive increase from diluted losses per share of $2.07 in fiscal Q4 2019.
  • Revenue for the quarter comes in 172% higher than the $223.3 million reported during the same time last year.
  • Operating income of $90 million is a positive switch year-over-year from an operating loss of $49.4 million.
  • The Peloton earnings report also includes a net income of $89.1 million.
  • That’s much better than the company’s net loss of $47.4 million from the same period of the year prior.

Peloton said the following in a letter to shareholders.

“Subscription revenue grew to $121.2 million in Q4, representing 99% year-over-year growth and 20% of total revenue, driven by strong Connected Fitness Product sales and continued low Average Net Monthly Connected Fitness Churn of 0.52%.”

Peloton also includes fiscal 2021 guidance in its earnings report. It’s expecting revenue for the year to range from $3.50 billion to $3.65 billion. Wall Street’s revenue estimate for fiscal 2021 is $2.72 billion.

PTON stock was up 6.7% after markets closed on Thursday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


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