by - Peloton surged Wednesday after the company released its earnings and its CEO announced a comeback.
- The company trimmed its net loss, but it’s the eighth consecutive quarter it hasn’t turned a profit.
- “This was by far our best quarterly performance in my 12 months at Peloton,” said CEO Barry McCarthy.
Peloton shares rose 21% on Wednesday after the fitness company released second-quarter financial results and CEO Barry McCarthy touted investors of an “epic comeback.”
The exercise equipment maker was trading at $15.64 as of 2:18 p.m. ET.
Peloton’s reported earnings beat Wall Street estimates, based on a poll of analysts by Refinitiv. The stationary fitness equipment maker known for its stationary bike reported sales of $792.7 million versus analyst estimates of $710 million.
The company said its net losses fell 24%, falling to $335.4 million from $439.4 million a year earlier.
However, this is the eighth consecutive quarter that the company hasn’t turned a profit.
Still, the CEO says the quarter marks a turning point for Peloton.
“If you’ve been wondering whether or not Peloton can make an epic comeback, this quarter’s results show that the changes we are making are working,” McCarthy said in a statement to shareholders on Wednesday.
McCarthy added, “This was by far our best quarterly performance in my 12 months at Peloton. Most of the leadership team is also relatively new to Peloton and new to their teams. Given what we’ve already accomplished, imagine what’s possible once the team gets together and finds its groove.”
Peloton has been a favorite of the pandemic as customers flocked to the company for its at-home fitness equipment while gyms remained closed during the lockdown. From the beginning of the pandemic through October 2020, the company’s stock rose more than 300%.
However, the company’s fortunes took a turn for the worse as Covid restrictions were lifted and people gradually left their homes to attend their fitness routines. Peloton implemented cost-cutting measures, including mass layoffs. Despite Peloton stock’s recent rally, shares are still about 87% off their all-time high.
“We were on the brink of extinction and that’s not the case anymore,” McCarthy told Bloomberg on Wednesday. “We’ve put questions to bed about the viability of the business.”
