Peloton Interactive, Inc. (PTON) is gearing up to unveil its fourth-quarter fiscal 2024 earnings on August 22, before the market opens. The company’s recent performance has been a mixed bag, with its last quarter missing the Zacks Consensus Estimate by 15.4%.
Analysts are predicting a loss of 18 cents per share for the fourth quarter, a significant improvement from the 68-cent loss reported in the same period last year. Revenue projections are set at $626.3 million, indicating a 2.5% decline compared to the previous year’s figures.
The anticipated revenue dip can be attributed to a decrease in sales of Connected Fitness Products and a rising rate of churn in Connected Fitness subscriptions. However, Peloton is actively working to counter these challenges through strategic partnerships and growth initiatives. Additionally, their ongoing global expansion efforts are expected to have a positive impact.
Analysts predict that Connected Fitness Products revenue will decline by 12% year-over-year, reaching $193.9 million. In contrast, subscription revenue is expected to climb 3% year-over-year to $434.3 million. The company’s cost-cutting efforts are likely to contribute to a narrower loss per share compared to the previous year.
While Peloton’s cost-cutting measures show promise, the company faces an uphill battle to regain its footing. The Zacks Model, which uses Earnings ESP and Zacks Rank, does not provide a strong indication of an earnings beat for Peloton in this upcoming report.
For investors seeking companies poised to surpass earnings expectations, here are a few alternatives:
Ollie’s Bargain Outlet (OLLI):
With an Earnings ESP of +2.38% and a Zacks Rank of 3, Ollie’s Bargain Outlet is projected to deliver an increase in earnings when it releases its second-quarter fiscal 2024 results. Analysts anticipate both earnings and revenue growth for the quarter.
Burlington Stores (BURL):
Burlington Stores boasts an Earnings ESP of +5.62% and a Zacks Rank of 3. The company is expected to report both top and bottom-line growth for its second-quarter fiscal 2024 results. Analysts predict a substantial increase in earnings compared to the previous year’s performance.
