Peloton (PTON) to Post Q2 Earnings: What's in the Offing?
Peloton Interactive, Inc. PTON is scheduled to report second-quarter fiscal 2024 results on Feb 1, 2024, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 22.2%,
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal second quarter is pegged at a loss of 55 cents per share. It reported a loss of 98 cents in the year-ago quarter.
For revenues, the consensus mark is pegged at $740.8 million, suggesting a decline of 6.6% from the year-ago quarter’s reported figure.
Factors at Play
Peloton is anticipated to report a decline in fiscal second-quarter revenues from the year-ago levels due to a decrease in hardware sales and increased churn in Connected Fitness subscriptions. Nevertheless, the impact of these challenges is expected to be partially mitigated by the company's growth initiatives and strategic partnerships. Additionally, PTON's emphasis on global expansion is likely to have acted positively.
For the to-be-reported quarter, the Zacks Consensus Estimate for Connected Fitness Products revenues is pegged at $324 million, down 15% from the prior-year levels. However, revenues from subscription are expected to increase 1.7% from the year-ago levels to $418 million.
Meanwhile, the company's bottom line is likely to have been affected by inflationary pressure and increased sales and marketing costs.
Peloton Interactive, Inc. Price and EPS Surprise
Peloton Interactive, Inc. price-eps-surprise | Peloton Interactive, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat Peloton this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Peloton has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Peloton has a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International MGM has an Earnings ESP of +14.99% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have gained 9.5% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation BYD has an Earnings ESP of +1.10% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 6.8% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Hasbro, Inc. HAS has an Earnings ESP of +5.05% and a Zacks Rank #3.
Shares of Hasbro have declined 13.5% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Hasbro, Inc. (HAS) : Free Stock Analysis Report
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Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report
