Peloton stock bounces back after revised forecast calls for $4 billion in annual sales


Peloton Interactive Inc. executives expect to take a financial hit from the recall of its treadmills, but they believe continuing strong demand for the company’s exercise bikes and the clearing a delivery backlog should come close to papering over the shortfall.

Peloton PTON, +1.40% shares dove about 4% lower in the extended session Thursday after the company reported fiscal third-quarter losses despite sales doubling. The stock turned around to a 6% gain in after-hours trading, though, after executives discussed their revised forecast in a conference call Thursday afternoon.

While noting that a recall of its treadmill product would cost the company about $165 million in revenue in its fiscal fourth quarter, Peloton Chief Financial Officer Jill Woodworth still guided for fourth-quarter sales of $915 million and an annual total of $4 billion, not far off from the previous annual forecast for $4.08 billion in sales.

“Anticipated Bike and Bike+ sales have been tapering from COVID highs, and we’re expecting a gradual return to historical seasonal sales trends. However, our unit sales remained significantly higher than pre-COVID levels, [and we]expect global bike and bike close unit sales in Q4 fiscal ’21 to be over three times higher than they were in Q4 of fiscal ’19, two years prior,” Woodworth said.

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