Peloton works out a huge increase in sales as stock soars
Pandemics closing of closed gyms and fitness clubs boosts company
Peloton Interactive Inc beat analysts’ estimates for quarterly revenue on Thursday as the exercise bike maker benefited from a surge in subscribers and demand for its fitness products during the coronavirus pandemic.
PELOTON LAUNCHING CHEAPER TREADMILL, CUTTING BIKE PRICE
Shares of the company rose 8% in extended trading as it forecast full-year revenue above Wall Street expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.55 | -0.79 | -7.64% |
Stay-at-home stocks like Peloton have benefited from increased demand during the COVID-19 pandemic as closed gyms and fitness clubs turned people towards streaming exercise services and home work-out equipment. The stock has more than tripled this year.
Sales of Peloton’s electric bikes and other fitness equipment tripled to $485.9 million in the quarter. Its subscriptions rose 113% to 1.09 million.
The company forecast revenue for fiscal year 2021 between $3.50 billion and $3.65 billion. Analysts on average were expecting $2.72 billion, according to Refinitiv data.
HOW MUCH DOES A PELOTON BIKE COST?
Net income attributable to Class A and Class B shareholders was $89.1 million, or 27 cents per share, in the fourth quarter ended June 30, compared with a loss of $47.4 million, or $2.07 per share, a year earlier.
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Total revenue surged 172% to $607.1 million.
Analysts on average had expected revenue of $583 million.
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