Why Peloton Shares Are Falling Today

Peloton Interactive Inc PTON is trading lower Friday morning after the company announced its fourth-quarter fiscal 2021 financial results and issued guidance below estimates. 

Peloton reported a quarterly earnings loss of $1.05 per share, which was down from earnings of 27 cents per share year over year. The company reported quarterly revenue of $936.9 million, which beat the estimate of $921.66 million. 

Peloton said it expects first-quarter fiscal 2022 revenue to be about $800 million, which is below the estimate of $1.06 billion. 

The company ended the quarter with $1.6 billion in cash, cash equivalents and investments in marketable securities.

"In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth," Peloton said in a letter to shareholders. 

Analyst Assessment:

• Needham analyst Bernie McTernan maintained Peloton with a Buy rating and lowered the price target from $135 to $130.

• Credit Suisse analyst Kaumil Gajrawala maintained Peloton with an Outperform rating and lowered the price target from $151 to $148.

PTON Price Action: Peloton has traded as high as $171.09 and as low as $66.73 over a 52-week period.

At last check Friday, the stock was down 7.97% at $105.

Photo: courtesy of Peloton.