Exercise equipment company Peloton (NASDAQ: PTON) will be announcing earnings results this Thursday after market hours. Here’s what to expect.
Peloton beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $606.9 million, down 5.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported 2.8 million connected fitness subscribers, down 6.1% year on year.
Is Peloton a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Peloton’s revenue to decline 7.9% year on year to $539.6 million, a further deceleration from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Peloton has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Peloton’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 0.8%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. Apple’s stock price was unchanged after the resultswhile Nike was up 6.5%.
Read our full analysis of Apple’s results here and Nike’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7% on average over the last month. Peloton is down 15.5% during the same time and is heading into earnings with an average analyst price target of $10.18 (compared to the current share price of $7.05).
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