Peloton Interactive, Inc. PTON is poised to unveil its fourth-quarter fiscal 2024 results on August 22, just before the day’s trading commences. Last quarter, the company missed the Zacks Consensus Estimate by a sizable 15.4%.
The Evolution of Estimates
The Zacks Consensus Estimate for this quarter sits at a projected loss of 18 cents per share, a significant improvement from the 68-cent loss reported in the same quarter last year.
Revenue-wise, analysts expect a figure of $626.3 million, signaling a 2.5% drop compared to the year-ago quarter.
Factors Impacting the Results
Peloton is anticipated to reveal lower revenues in the fourth quarter, attributed to reduced Connected Fitness Products earnings and heightened churn in Connected Fitness subscriptions. However, these challenges are likely to be partly offset by the company’s growth strategies and strategic alliances. Furthermore, PTON’s global expansion endeavors are anticipated to have a positive impact.
For the upcoming quarter, the Zacks Consensus Estimate for Connected Fitness Products revenues is at $193.9 million, down 12% from the previous year. Conversely, subscription revenues are projected to climb by 3% year over year, reaching $434.3 million.
On the flip side, the anticipated earnings per share decline is expected to have narrowed compared to the previous year due to Peloton’s cost-saving actions.
Unveiling the Price and EPS Dynamics
Peloton Interactive, Inc. price-eps-surprise | Peloton Interactive, Inc. Quote
Predictive Insights from Zacks Model
Our data-driven model currently does not foresee an earnings beat for Peloton. To surpass expectations, a company requires a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) – conditions which are not met here.
Earnings ESP: Currently, Peloton has an Earnings ESP of -37.59%.
Zacks Rank: The company currently holds a Zacks Rank #3.
Stocks Showing Potential for Earnings Optimism
Identified through our analysis, here are some options that exhibit promising traits for potentially outperforming this earnings season.
Ollie’s Bargain OLLI currently boasts an Earnings ESP of +2.38% alongside a Zacks Rank of 3. When it discloses its second-quarter fiscal 2024 figures, the company is expected to show bottom-line growth. The Zacks Consensus Estimate of 78 cents per share for quarterly earnings reflects a 16.4% uptick from the prior year.
Moreover, Ollie’s Bargain is likely to witness revenue growth year over year. Analysts project quarterly revenues of $562.4 million, a 9.3% increase from the corresponding period. OLLI has a consistent track record with an average four-quarter earnings surprise of 10.4%.
Burlington Stores BURL currently has an Earnings ESP of +5.62% and a Zacks Rank of 3. The company anticipates growth both in revenue and bottom line in its second-quarter fiscal 2024 results. The consensus estimate for BURL’s quarterly earnings stands at 93 cents per share, reflecting a substantial 55% surge from the previous year.
Projections for quarterly revenues stand at $2.41 billion, a 10.9% rise from the corresponding period last year. BURL has impressively surpassed earnings expectations, boasting an average four-quarter surprise of 21.7%.
Costco Wholesale Corporation COST currently holds an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to showcase growth in both top and bottom lines in its fourth-quarter fiscal 2024 results. Estimates for COST’s quarterly revenues are set at $80.1 billion, indicating a 1.4% increase from the previous year’s figure.
The consensus estimate for Costco’s earnings has remained steady at $5.02 over the past month, implying a 3.3% growth from the prior year. Costco has a track record of surpassing expectations, delivering an average earnings beat of 2.3% over the past four quarters.
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