What's in the Offing for Peloton (PTON) in Q2 Earnings?
Peloton Interactive, Inc. PTON is scheduled to report second-quarter fiscal 2021 earnings on Feb 4, after market close. In the last reported quarter, the company delivered an earnings surprise of 66.7%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 10 cents per share, which indicates improvement of 150% from a loss of 20 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,026 million, which suggests growth of 120% from the prior-year quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Peloton’s fiscal second-quarter performance is likely to reflect a surge in demand for its in-house exercise equipments like Bike and Bike+. The company anticipates higher sales on the back of reduced prices and higher acceptance for Bike+. This along with increased focus on extending manufacturing base with related shipment and delivery, innovation for its fitness product portfolio and new digital content is likely to have boosted fiscal second-quarter top line. For the fiscal second quarter, the company anticipates total revenues of $1 billion that suggests growth of 114% year over year.
Meanwhile, the company is optimistic about its connected fitness subscribers business and its collaboration with the Chase Sapphire platform. Notably, this initiative is likely to boost Peloton’s brand awareness and drive sales in the to-be-reported quarter. Meanwhile, Peloton expects subscriber count of 1.63 million, which suggests growth of 129% year over year.
What Our Model Says
Our proven model predicts an earnings beat for 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 estimates.
Earnings ESP: Peloton has an Earnings ESP of +6.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Peloton, currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
MGM Resorts International MGM has a Zacks Rank #3 and an Earnings ESP of +3.54%.
Mattel, Inc. MAT has a Zacks Rank #3 and an Earnings ESP of +9.29%.
Corsair Gaming, Inc. CRSR has a Zacks Rank #3 and an Earnings ESP of +17.24%.
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Mattel, Inc. (MAT) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report
Corsair Gaming, Inc. (CRSR) : Free Stock Analysis Report
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