Its high-tech exercise bike and treadmill quickly became two of the most popular consumer products., wanting to train in the Covid crisis. Wall Street supported momentum, as a result, Peloton shares rose by more than 400% in 2020 year.
But increased demand has also led to stress in the supply chain.. In May, Peloton announced an investment of $400 million to build its first plant in the United States to speed up production and supply.
How the report will affect the stock
Analysts want to see, will the business be able to keep pace. The company plans to expand abroad and launch additional products.
- Peloton must also invest, to keep your existing subscriber base, or risk losing them to gyms or other equipment manufacturers, such as Tonal and Hydrow.
Analysts expect, that Peloton will report an adjusted loss per share $0.44 with proceeds $921,7 million for the fourth fiscal quarter.
Investors should pay attention to these three key areas.
Forecast of 2022 Fiscal Year Peloton is set to report its fourth quarter financial results and 2021 year. Analysts and investors expect, that the company will publish some recommendation for the first fiscal quarter and 2022 year.
Oppenheimer analysts group lowered their target share price to $140 with $150, partly because of, what the firm expects, that management will barely live up to expectations.
Oppenheimer said, that outbound web visits of the payment provider from the Peloton website decreased by 38% in the fourth quarter compared to the third quarter and by 33% in July compared to the previous month.
In past quarters, this particular traffic trend on 88% correlated with the supply of Peloton equipment.
Peleton becomes more popular among US residents Peleton becomes more popular among US residents
Fall can mean, that purchases of Peloton equipment are slowing down or that supplies are being delayed. Expected, what's Peloton's sales 2021 financial year will be $4 billion, What's on 119,4% more, than in the previous year.
Treadmill update
Peloton recalled both of its treadmills in May, Tread и Tread+, for security reasons. This affected about 125 000 machines with tread + and about 1 050 products with a tread in the USA. ? Peloton expects, that a treadmill recall would reduce Q4 sales by $165 million. He incurred additional costs, offering customers a full refund.
Engagement metrics
In addition to revenue and profit growth, analysts and investors study such indicators, as churn rate and number of workouts per subscriber, to understand, how the company retains users.
- Last Quarter Peloton Average Net Monthly Connected Fitness Churn, which measures the retention of connected fitness subscribers, hit a six-year low in 0,31%, but it can't go on like this forever.
P
Seasonality can also affect key Peloton metrics. For example, in the summer months people, usually, spend more time outdoors and, hence, doing less workout on the treadmill or indoor bike.
