: Peloton stock surges after earnings as revenue declines again but beats expectations

Peloton Interactive Inc. shares PTON were roaring 8% higher in premarket trading Thursday after the maker of connected exercise equipment beat revenue expectations for the latest quarter and gave an upbeat top-line outlook. Peloton logged a fiscal third-quarter net loss of $276 million, or 79 cents cents a share, whereas it lost $757 million, or $2.27 a share, in the year-earlier period. Analysts tracked by FactSet expected a 48-cent GAAP loss per share. Peloton also posted a loss on the basis of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $18.7 million, compared with a loss of $194.0 million in the metric a year prior. Analysts were looking for a $45 million loss on the metric. Revenue fell to $748.9 million from $964.3 million, while the FactSet consensus was for $711 million. “Last quarter I described our performance as the best in my twelve months with Peloton,” Chief Executive Barry McCarthy said in a letter to shareholders. “Our Q3 performance was even better.” For the fiscal fourth quarter, Peloton expects a loss of $10 million to $25 million on the basis of adjusted Ebitda, along with $630 million to $650 million in revenue. Analysts had been projecting $1 million in positive adjusted Ebitda and $615 million in revenue.

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