Why Peloton Dropped 11% Despite Topping Estimates
Shares of Peloton Interactive (NASDAQ: PTON), a large interactive fitness platform with over 2 million members, declined over 11% Thursday as the market absorbed the company's second-quarter fiscal 2020 results and guidance.
Peloton's second-quarter revenue jumped 77% from the prior quarter to $466.3 million, easily topping analysts' estimates calling for $423 million. The company posted a loss of $0.20 per share, which was still better than the $0.35-per-share loss analysts had expected. Despite topping analysts' estimates on the top and bottom line, Peloton's report included a couple of negative metrics. First, even though top-line growth was impressive at 77% compared to the prior year, it was slower than what the company saw in its first quarter of fiscal 2020 -- over 100% year-over-year growth. Second, slightly adding to growth deceleration concerns, management projects third-quarter revenue to be $470 million to $480 million, below analysts' estimates calling for $494 million.
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Source Fool.com
