By Dhirendra Tripathi
Investing.com – Peloton stock (NASDAQ:PTON) fell 0.5% on Tuesday as a Raymond James analyst drew attention to another soft quarter for the company.
According to StreetInsider, analyst Aaron Kessler is maintaining his market perform rating on the fitness equipment-maker while pointing out to the latest data indicting softening demand and increasing costs amid supply chain bottlenecks.
Peloton, one of the biggest winners of the pandemic when people stayed home and bought the company’s equipment to keep fit, was left shocked as people junked its gear to exercise outside once the economy reopened. Its attempts to tap the mass market by lowering the price of its flagship exercise bike also fell flat, its image of being a maker of high-end items coming in the way.
In the ongoing quarter, Peloton expects revenue to come in between $1.1 billion and $1.2 billion. For the full year, the company has guided for revenue of $4.4 billion to $4.8 billion.
According to Kessler, both the quarterly and the annual estimates are aggressive, believing that the company factored in a stronger seasonality return in the current quarter.