Peloton tanks 20% on Q3 results: ‘worst-case scenario seems priced in’

Peloton Interactive Inc (NASDAQ: PTON) tanked 20% in the stock market this morning on weak third-quarter results and disappointing guidance for the future.

Peloton Interactive Q3 earnings snapshot

• Lost $757.1 million in fiscal Q3 versus the year-ago figure of $8.60 million.
• Per-share loss of $2.27 was significantly above 3 cents it reported last year.
• Revenue sunk 23% YoY to $964.3 million, as per the earnings press release.
• FactSet consensus was for 83 cents of per-share loss on $970 million in revenue.
• Ended Q3 with 2.962 million subscribers, up 42% on a year-over-year basis.

Last week, Peloton was reported in search of potential buyers for a minority stake to shore up business. The stock is now down over 65% for the year.

Future outlook and analyst’s remarks

For Q4, Peloton forecasts its revenue to fall between $675 million and $700 million on up to $120 million in loss. In comparison, analysts anticipated $820 million in revenue and $19 million of adjusted EBITDA loss.

Despite the let-down, Loop Capital’s Daniel Adam dubs the stock a “buy” with upside to $55 a share. On CNBC’s “Worldwide Exchange”, he said: