Peloton Stock Surges Over 24% After Revenue Beat and Upgraded Profit Forecast

Peloton Interactive Inc. (NASDAQ: PTON) saw a significant surge in its stock price, jumping over 24% in premarket trading following a stronger-than-expected revenue report for its fiscal second quarter ending December 31, 2024.

Revenue and Earnings Beat Expectations

Peloton reported a revenue of $743.6 million, significantly surpassing Wall Street estimates of $652.7 million.

The company’s growth was driven by a sharp increase in connected fitness product sales, including high demand for the Tread and Tread+ models. Compared to the same period last year, revenue increased by 26.9%.

In addition, Peloton raised its fiscal 2025 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to a range of $300 million to $350 million, up from its previous projection of $240 million to $290 million.

The company credited cost-cutting measures and a stronger push into subscription-based revenues as key drivers behind this upward revision.

Stock Price Reaction

Following the earnings report, Peloton’s stock price surged by 24.93% to $9.47 per share as of the latest trade. During the intraday session, shares hit a high of $9.73, reflecting strong investor optimism.

Key Drivers Behind the Growth

• Higher Sales in Connected Fitness Products: Increased demand for treadmills and smart exercise equipment fueled revenue growth.
• Subscription Growth: The company’s subscription-based revenue stream continued to expand, reinforcing its recurring revenue model.
• Cost Reductions: Peloton’s ongoing restructuring efforts helped improve margins and profitability.

Outlook and Market Sentiment

With the upgraded profit forecast and sustained demand for its products, Peloton’s turnaround efforts appear to be gaining traction. Analysts suggest that if the company continues on this trajectory, it could further solidify its position in the competitive fitness market.

Investors and analysts will be closely watching Peloton’s next earnings report to gauge the sustainability of its recent success.

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