Peloton (PTON:NSD) Beats on Earnings, Eats Less Cash

Peloton Earnings

Peloton Interactive, the fitness equipment maker, reported higher-than-expected revenue for the current quarter and slowing cash burn due to cost-cutting measures. The company saw a decline in demand for its equipment as people returned to gyms after the COVID-19 lockdowns. In response, Peloton announced plans to sell its fitness equipment on Amazon and at Dick’s Sporting Goods stores. The CEO, Barry McCarthy, outlined goals of returning to revenue growth and reaching cash flow breakeven in his second year in the role. Despite the optimistic outlook, analysts predict a bumpy ride for Peloton in the coming months and some remain skeptical about the company’s business model. The company forecasted revenue of $690 million to $715 million for the third quarter, above the expectations of $689.1 million. The company’s goal of reaching break-even free cash flow by the end of fiscal 2023 remains unchanged. Peloton’s net loss narrowed to 98 cents per share in the second quarter, but it was larger than the expected loss of 64 cents. Cash burn decreased to $94.4 million from $546.7 million.

PTON Stock Price Forecast & Analysis

The average stock price target for Peloton Interactive Inc. (PTON:NSD) is USD 13.35 over the next 12 months, as estimated by 23 analysts. The average analyst rating for PTON is “Buy”, which means that the majority of analysts believe that the stock will perform well in the future and recommend purchasing it.

Stock Target Advisor has a “Bearish” rating for PTON, which is based on 2 positive signals and 7 negative signals. The last closing price for PTON was USD 12.93. Over the past week, PTON’s stock price has increased by +16.91%, over the past month by +62.85%, but has decreased by -52.69% over the last year.

Latest Analyst Coverage for PTON:

Robert W. Baird & Co. has downgraded its rating for Peloton Interactive Inc. (PTON) from a Buy rating to a Neutral rating and lowered its 12 month target price from USD 14 to USD 12 on January 24th, 2023.

STA Research maintained its “Buy” rating for PTON with a target price of USD 15, also on January 24th.

Morgan Stanley & Co. maintained its “Equal-Weight” rating but lowered its target price from USD 5 to USD 4.5 on January 11th, 2023.

Sanford C. Bernstein & Co. also lowered its target price for PTON to USD 13 on January 5th, 2023.

 

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