Peloton Interactive, Inc. ($PTON) Earnings (Q4 FY22)

 Peloton Interactive, Inc. ($PTON) Earnings and Opinion:


Peloton is a company in the Consumer Cyclical sector and operates in the Leisure industry. The company provides interactive fitness products in North America and internationally. Peloton was founded in 2012 and is currently headquartered in New York, New York. The company made its debut on the stock market in September of 2019.

Peloton Earnings Results:

  • Revenues of $678M missing expectations of $683M
  • Gross Profit of -$30M missing expectations of $211M
  • Adjusted EBITDA of -$289M missing expectations of -$123M
  • EPS of -$3.68 missing expectations of -$0.78
  • Free Cash Flow of -$412M missing expectations of -$160M
  • Guidance missed on all metrics for Q1 FY23
Opinion:
Peloton stock is falling today, after reporting earnings before the market opened this morning. They just struck a major deal with Amazon yesterday, which would allow them to sell their products on the website. This was seen as a positive sign for the stock and caused it to rise to hopefully bring some hope in the uprising of Peloton again. Today, is a different story. The company missed extremely bad on all of the earnings metrics, and guidance wasn't even close to consensus estimates. The company has stated that it will "no longer report quarterly engagement metrics". This business has changed a lot since its thriving times during COVID. For valuation, the stock sits at a P/S ratio of 2.30 which is a little high. The profitability measures are volatile and in bad shape. The revenue growth fluctuates over the year. The company has a solid current ratio, but the debt outweighs the cash by a little margin. In my opinion, this is one of the stocks to stay away from. I could almost see it turning into a meme stock. The business got lost after everyone started to return to in-person gyms after COVID. This stock was so popular during COVID, but times have changed and normalcy returned, causing the stock to fall off the face of the earth. It's best to stay out of this one for now.


*Information from Yahoo Finance, CMLVIZ, and Consensus Gurus.

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