Peloton Earnings: Will the Stock Climb on a Strong Report Despite the Treadmill Safety Issue?
Peloton Interactive (NASDAQ: PTON) is slated to report its results for the third quarter of fiscal 2021 (January through March) after the market close on Thursday, May 6. A conference call with analysts is scheduled for the same day at 5 p.m. EDT.
The connected home-exercise leader is heading into its report on a mixed note. On the positive side, the company has sprinted by Wall Street's consensus estimates for both the top and bottom lines for three consecutive quarters. The COVID-19 pandemic has been providing a powerful catalyst for growth. Many former gym-goers along with others who have been home more often have embraced Peloton's internet-connected stationary bikes and treadmills.
On the other hand, the report will come on the heels of negative publicity stemming from the U.S. Consumer Product Safety Commission (CPSC) requesting Peloton recall its Tread+, and CEO John Foley's response that the company has "no intention of doing so." This product has been involved in the death of one young child and nearly 40 reported incidents involving children, according to the CPSC. The federal consumer safety agency has urged consumers who have young children to stop using this product, which it said can also pose a danger to pets. Peloton has disagreed with this advice, contending the product is safe when all instructions and warnings are followed.
Source Fool.com
