Fitness equipment maker Peloton Interactive (PTON) is scheduled to announce its results for the second quarter of Fiscal 2025 before the market opens on Thursday, February 6. Despite the recent pullback, PTON stock has risen about 73% over the past year. Upbeat Q1 FY25 results and the appointment of Ford (F) executive and Apple (AAPL) Fitness+ co-founder Peter Stern as the company’s CEO sparked optimism among investors. Wall Street expects Peloton to report a narrower loss per share of $0.20 for Q2 FY25 compared to the loss of $0.54 per share in the prior-year quarter.
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Further, analysts expect Peloton’s Q2 FY25 revenue to decline by over 12% year-over-year to $652.7 million. The company has been taking aggressive steps to reduce costs and improve its bottom line. After enjoying stellar demand due to COVID-related lockdowns and restrictions during the pandemic, Peloton faced pressures once the economy reopened and people started going to gyms.
Analysts’ Views Ahead of Peloton’s Q2 FY25 Results
Heading into Q2 FY25 results, Morgan Stanley analyst Nathan Feather reiterated a Hold rating on the stock with a price target of $5.25. Although the company is taking steps to improve its profitability, Feather noted that there are underlying concerns about future growth. He contends that while there is a possibility for positive earnings in the upcoming quarter, he remains cautious on Peloton stock due to falling web traffic, loss of market share, and dismal digital performance.
Like Feather, analysts at Truist Financial, Telsey Advisory, and Bernstein also reiterated a Hold rating on the stock, indicating a cautious stance due to ongoing challenges.
Options Traders Anticipate a Major Move on PTON’s Q2 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 18.6% move in either direction in reaction to Peloton’s Q2 FY25 results.
Is PTON Stock a Buy, Sell, or Hold?
With six unanimous Hold ratings, Wall Street is sidelined on Peloton stock. The average PTON stock price target of $9.38 implies 28.1% upside potential.
