Peloton raises full-year guidance after Q2 beat

(Sharecast News) - Peloton's share price raced ahead on Thursday after the fitness equipment maker impressed with a strong set of second-quarter sales figures an upgrade to full-year forecasts. The company said revenues for the three months to 31 December totalled $673.9m, down from $743.6m a year earlier but comfortably ahead of the $652m expected by a consensus of analysts.

"We see significant opportunities ahead, but we have a steep hill to climb to reach sustained, profitable growth," said chief executive Barry McCarthy.

Operating losses for the second quarter were $45.9m, less than a third of the $141.2m loss reported the year before, helped by a 25% reduction in operating expenses.

Peloton said it exceeded its own guidance across key metrics during the quarter, including paid subscriptions which were broadly flat from the first quarter at 2.9m.

Looking ahead, the company said it was lifting its adjusted EBITDA guidance range to $300m-350m, up $60m from previous forecasts, and raised its free cash flow target to at least $200m from $125m.

The stock was 16.3% higher at $8.82 by 0954 in New York.