Shares of Peloton surge on strong earnings, new CEO
Two wheels good, four wheels better!
Shares of Peloton are spiking like my heart rate during a Denis Morton ride after the embattled fitness company reported better-than-expected earnings and also tapped Peter Stern, president of Ford Integrated Services, to be its next CEO.
Stern, the latest in a series of new CEOs during a year of high turnover atop Corporate America, has extensive history leading divisions that are right in Peloton’s wheelhouse: at Ford, his role had him leading digital and subscription services — marrying hardware, software, and services. Prior to that, he oversaw Apple TV, iCloud, and Apple News+.
Peloton’s adjusted earnings before interest, taxes, depreciation, and amortization were $115.8 million for the three months ending September 30, more than double what Wall Street had anticipated. While its outlook for next quarter’s revenues was shy of what analysts expected, a boost to its full-year earnings more than makes up for that in traders’ eyes. That’s proof its aggressive cost-cutting efforts — with operating expenses down 30% year on year — have borne fruit.
