Peloton Shares Surge on Strong Holiday Quarter Forecast
Peloton shares rose as much as 12 percent after the company announced a stronger-than-expected holiday quarter forecast, aiming to reposition itself as a comprehensive wellness brand and return to profitability following its first hardware revamp in years.
Revenue Outlook Exceeds Expectations
The company projected revenue between $665 million and $685 million for the quarter ending in December, surpassing Wall Street's estimate of approximately $661 million for its fiscal second quarter.
“Our continued momentum on bottom line performance sets the stage for improvements on the top line as we progress through the fiscal year, fuelled by our commitment to innovation and growing the Peloton community,” said CEO Peter Stern.
He expressed confidence in executing the strategic plan to return Peloton to profitable growth and strengthen its lead in connected fitness and wellness.
Product Recall Impact
Earlier on Thursday, Peloton recalled about 877,800 units of its high-end Bike+ model in the US and Canada after reports of seat posts breaking, which caused riders to fall off. This recall resulted in a $13.5 million cost during the first quarter.
Stock Performance
Peloton shares closed at $6.71 in New York, down 22.9 percent year-to-date through Thursday’s close despite the recent upward movement.
Summary: Peloton's stronger holiday forecast and strategic renewal efforts showcase its drive toward profitability and market leadership, despite previous setbacks like the costly Bike+ recall.
More News
- Sluggish Lakers trounced by short-handed Hawks to end winning streak
- New Zealand Vs West Indies, 3rd T20I: Kiwis Survive Late Scare To Seal 9-Run Victory | Outlook India
- Will Maryland National Guard riot control force stifle protests, elections?
- LIVE UPDATES: Super Typhoon Uwan
- Inter Miami Vs Nashville SC, MLS Cup 2025 Playoff: Lionel Messi Magic Leads Herons To East Conference Semi-Final | Outlook India