Peloton surged as much as 6% on Friday as massive sales growth offset concerns over supply constraints.
The company beat estimates for its fiscal first-quarter earnings and revenue, with the latter more than tripling from the year-ago reading.
Peloton also lifted its forecast for full-year sales above analyst expectations.
The previous quarter’s strong demand has given way to “unacceptably long” wait times for bikes, CEO John Foley said in a call with analysts, noting the company will invest in faster shipping and more manufacturing capacity.
The product shortage is “a good problem to have,” JPMorgan said in a note. The bank joined others in praising Peloton’s earnings results and lifted its price target to $145 from $125.
Watch Peloton trade live here.
Peloton erased early morning losses and soared as much as 6% on Friday as titanic sales growth overshadowed supply-chain issues.
Despite excitement over a forthcoming Peloton resale and rental program, CEO John Foley said it is “quarters if not years away” from being a viable revenue stream for the company given a lack of inventory.
According to Peloton, members are opting to keep their original bikes rather than trading them in for a credit when purchasing the new Bike+ model.
“We found that a disproportionate number of existing members decided to keep their original bike and buy a Bike+, whether they used the original bike in their second home or gave it to their college-aged daughter or son,” Foley said.
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Fitness buffs and investors alike have been abuzz over a forthcoming Peloton resale and rental program. But the fitness company is now warning enthusiasts not to expect the initiative to launch anytime soon.
According to Peloton CEO John Foley, the company has been
(Reuters) – Exercise bike maker Peloton Interactive Inc PTON.O on Thursday warned of near-term supply constraints, as demand for its at-home fitness equipment has shot up due to gym closures during the pandemic.
Peloton shares, which have risen four-fold this year, were down 7% in extended trading, even though the company’s first-quarter results topped Wall Street estimates and it raised the annual revenue forecast.
The exercise bike maker’s Connected Fitness revenue jumped 274% to $601.4 million in the quarter while its subscriptions climbed 137% to $1.33 million.
The segment, Peloton’s primary revenue generator, includes interactive fitness equipment with touchscreen that streams live and on-demand classes.
The company raised its 2021 revenue forecast and said revenue
Shares of exercise technology vendor Peloton slipped in late trading this afternoon even though the company’s fiscal first-quarter results topped Wall Street’s expectations for both revenue and profit per share, and its outlook for the full year was higher.
The company’s total subscriptions at quarter’s end were up 137%, at 1.33 million, Peloton said. It’s paid digital subscriptions rose 382% to 510,000, it said.
Total member count grew to over 3.6 million.
Peloton expects to have 1.63 million total subscriptions by the end of this quarter, it said. For the full year, it projects 2.17 million “or more” Connected Fitness subscriptions. That would be higher than consensus for 2.08 million.
In a letter to shareholders, the company said sales results were “driven by strong Connected Fitness Product sales and continued low Average Net Monthly Connected Fitness Churn of 0.65%.”
Its member engagement, Peloton said, “eased modestly from the prior quarter’s
If you bought a Peloton Bike between July 2013 and May 2016, you might want to check the clip-in pedals. Peloton is currently recalling the out-of-warranty PR70P pedals as they can unexpectedly break while you’re getting your sweat on—possibly resulting in injuries.
Peloton announced the recall on its website, though it’s a bit buried in its support section, which was initially spotted by Business Insider. The company notes that if you’ve never replaced the pedals, and bought it during the aforementioned time frame, you might still have the faulty pedals. The PR70P pedals in question can be identified by looking for the Peloton logo and the word “PELOTON” molded into the body, with the orange logo and “PELOTON” in white lettering on the top of the cleat binding, as you can see in this photo. The orange logo is