PTON Stock Alert: 9 Things to Know as Peloton Plummets 15% After Reporting Earnings

Peloton (NASDAQ:PTON) is the top trending stock on Yahoo today as the fitness company’s shares fall after releasing its fiscal Q3 2022 earnings report.

Peloton (PTON stock) sign on city storefront

Source: JHVEPhoto / Shutterstock.com

Let’s dive into everything investors in PTON stock need to know below!

  • Let’s start with the company’s diluted earnings per share of $2.27.
  • That’s a massive miss next to Wall Street’s estimate of -87 cents per share.
  • It’s also much wider than the -3 cents per share reported during the same time last year.
  • Revenue of $964.3 million also didn’t do PTON stock any favors today.
  • That’s due to it coming in below analysts’ revenue estimate of $973.02 million.
  • It’s also a drop from the $1.26 billion reported in the same period of the year prior.
  • Peloton’s outlook for its fiscal fourth quarter of 2022 also isn’t helping PTON stock out today.
  • The company is expecting revenue for the quarter to range from $675 million to $700 million.
  • That would easily see it missing Wall Street’s estimate of $821.68 million.

Barry McCarthy, president and CEO of Peloton, had this to say in its most recent earnings report.

“We finished the quarter with $879 million in unrestricted cash and cash equivalents, which leaves us thinly capitalized for a business of our scale. Earlier this week we took steps to strengthen our balance sheet by signing a binding commitment letter with JP Morgan and Goldman Sachs to borrow $750 million in 5-year term debt.”

PTON stock is experiencing heavy trading following today’s earnings report. This has some 25 million shares on the move as of this writing. That’s already more than double its daily average trading volume of 11 million shares.

PTON stock is down 14% as of Tuesday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/pton-stock-alert-9-things-to-know-as-peloton-plummets-15-after-reporting-earnings/.

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