Peloton Stock Falls After Worse-Than-Expected Q3 Results, New Co-CEOs, Restructuring Plan

Peloton Interactive, Inc. PTON shares are trading lower Thursday after the company reported worse-than-expected third-quarter results, announced a CEO transition and announced a 15% global workforce reduction.

The Details:

Peloton reported quarterly losses of 45 cents per share which missed the analyst consensus estimate of losses of 36 cents by 25%. Quarterly sales came in below analysts' estimates at $717.7 million, representing a 4.17% decrease from the same period last year.

The company announced CEO Barry McCarthy will step down and Karen Boone and Chris Bruzzo, will serve as Interim Co-CEOs while the company searches for a permanent replacement. 

Peloton announced a restructuring program to include a reduction to its global headcount by approximately 15%, impacting roughly 400 Peloton team members. The company will also continue reducing its retail footprint and redesign its international go-to-market approach to be more targeted and efficient. 

Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.

Additionally, Peloton lowered its full-year revenue outlook by $25 million, or 1%, at the guidance midpoint to $2.687 billion.

Several analysts lowered their price targets on the stock following the print: 

• Roth MKM maintained DoorDash with a Neutral and lowered the price target from $121 to $118.
• Oppenheimer maintained an Outperform rating and lowered the price target from $150 to $125.
• JMP Securities maintained its Market Outperform rating and lowered the price target from $160 to $140.
• RBC Capital analyst Brad Erickson maintained DoorDash with an Outperform and lowered the price target from $175 to $165.
• BMO Capital analyst Brian Pitz maintained an Outperform rating and lowered the price target from $138 to $127.

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PTON Price Action: According to Benzinga Pro, Peloton Interactive shares are down 4.04% at $3.09 at the time of publication Thursday. 

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