Peloton Stock Plummets 20% in Morning Trading After Wider Q3 Loss.
Peloton said its loss for the three months ending in March, the group's fiscal third quarter, was pegged at $2.27 per share, down from a loss of 3 cents per share over the same period last year and well outside the Street consensus forecast of a loss of 83 cents per share. Group revenues, Peloton said, fell 23.5% from last year to $964.3 million, again missing analysts' estimates of a $973 million tally.
Looking into the current quarter, Peloton said it sees revenues in the region of $675 million to $700 million, and plans to end the period with just under 3 million subscribers to its Connected Fitness program.
"Turnarounds are hard work. It’s intellectually challenging, emotionally draining, physically exhausting, and all consuming. It’s a full-contact sport," McCarthy said in a letter to shareholders published alongside the third quarter earnings release.
"Some of the challenges we face are systems related (there is substantial tech debt, not uncommon among successful fast-growing businesses) which tax our productivity and speed of decision making, as well as our speed of execution," he said. "And some of 1 the challenges have resulted from poor execution, like last quarter’s increased use of 3PL partners for last mile distribution. The strategy wasn’t flawed, but our execution was. Better systems. Better decision making. Better execution. We’re working on it."
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