Factors Setting the Tone for Peloton's (PTON) Q4 Earnings

Peloton Interactive, Inc. PTON is likely to witness sequential improvement in the bottom line, when the company reports fourth-quarter fiscal 2020 results. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 11.1%.

Factors to Note

Increase in demand for the company’s Connected Fitness Products and Subscription services might get reflected in the fiscal fourth-quarter top line. The company’s in-house exercise equipment like treadmills and stationary bikes are likely to have been in demand among fitness enthusiasts amid the coronavirus pandemic.

Moreover, increase in digital subscribers, attributable to improvements in its fitness content and features made available on its digital app, may have positively impacted the company’s to-be-reported quarter’s performance. Notably, the company recently launched an app on Apple TV and Amazon Fire TV.

Peloton Interactive, Inc. Price and EPS Surprise Peloton Interactive, Inc. Price and EPS Surprise

Peloton Interactive, Inc. price-eps-surprise | Peloton Interactive, Inc. Quote

What Our Model Says

Our proven model predicts an earnings beat for Peloton this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Peloton has an Earnings ESP of +7.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Peloton carries a Zacks Rank #2.

Other Stock With Favorable Combinations

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these too have the right combination of elements to deliver an earnings beat this time around.

Callaway Golf Company ELY has an Earnings ESP of +222.5% and a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Acushnet Holdings Corp. GOLF has an Earnings ESP of +180.01% and a Zacks Rank of 3.

Vista Outdoor Inc. VSTO has an Earnings ESP of +1,300.12% and a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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