Peloton’s sales jump an unprecedented 172% in the fourth quarter

Peloton Interactive Inc (NASDAQ: PTON) publish its financial results on Thursday after the bell that highlighted an unprecedented 172% increase in sales in the fiscal fourth quarter. The company said that its high-tech treadmill and stationary bike were greatly in demand in recent months as COVID-19 restricted people to their homes.

Peloton also expressed confidence that its sales will remain robust in the upcoming months as it gave its future financial guidance that blew past Wall Street estimates. Peloton announced to have expanded its product line earlier this week.

Peloton’s Q4 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast the company to print £454.71 million in revenue in the fourth quarter. In terms of earnings per share, they had estimated 7.81 pence per share. In its report on Thursday, Peloton topped both estimates posting a higher £473.92 million in revenue and 21.08 pence of adjusted earnings per share in Q4.

At £69.55 million, the exercise equipment and media company said that its profit in the fourth quarter was significantly stronger than £37.00 million of loss in the same quarter last year. Peloton said that its gross margins climbed to 47.6% in the recent quarter.

According to the New York-based company, it saw an about 113% growth in connected fitness subscribers in the fourth quarter to 1.09 million. As of the end of Q4, it had a total of 3.1 million members.

Peloton’s future financial guidance

For the fiscal first quarter, Peloton forecasts sales to lie between £562.05 million and £569.86 million that will represent an annualised growth of 218%. Analysts are calling for a much lower £395 million of sales in Q1. Peloton expects its full-year sales to print in the range of £2.73 billion to £2.85 billion. Experts, on the other hand, are anticipating £2.11 billion of annual sales for the company.

The American company valued its cash, cash equivalents, and marketable securities at £1.41 billion as of the end of the fourth quarter. In the prior quarter (Q3), Peloton’s revenue had jumped 66%.

Peloton was reported about 10% up in after-hours trading on Thursday. Shares of the company are now a little under 250% up in the stock market in 2020 so far. Looking forward to investing in the stock market online? Here’s a simple guide to get you started.

At the time of writing, Peloton is valued at £19.40 billion.