Peloton surges 21% after its CEO says the fitness company is on track for an 'epic comeback'
- Peloton spiked Wednesday after the company published earnings and its CEO teased a comeback.
- The company narrowed its net losses, but it's the eighth straight quarter it has failed to turn a profit.
Peloton stock surged 21% on Wednesday after the fitness company posted second-quarter fiscal results and CEO Barry McCarthy teased an "epic comeback" to investors.
The exercise equipment maker was trading at $15.64 as of 2:18 p.m. ET.
Peloton's reported revenue beat Wall Street's estimates, based on a survey of analysts by Refinitiv. The stationary fitness equipment maker known for its stationary bike posted $792.7 million in revenue versus analysts' estimates of $710 million.
The company said its net losses declined 24%, dropping to $335.4 million from $439.4 million a year prior.
However, this is the eighth straight quarter the company has failed to turn a profit.
Still, its CEO says that the quarter marks a turning point for Peloton.
"If you've been wondering whether or not Peloton can make an epic comeback, this quarter's results show the changes we're making are working," McCarthy said in a statement to shareholders on Wednesday.
McCarthy added: "This was by far our best quarterly performance in my twelve months with Peloton. Most of the executive team is also relatively new to Peloton and new to their teams. Given what we've already accomplished, imagine what's possible once the team finds its groove."
Peloton was a favorite of the pandemic, as customers flocked to the company for its at-home fitness equipment while gyms remained closed during lockdown. From the early days of the pandemic to October 2020, the company's stock spiked more than 300%.
However, the company's fortunes soured as Covid restrictions lifted and people gradually left home for their fitness routines. Peloton implemented cost cutting measures, including mass layoffs. Despite Peloton's stock's recent rally, shares are still roughly 87% lower from their record high.
"We were on the brink of extinction, and that's no longer the case," McCarthy told Bloomberg on Wednesday. "We've put to bed questions about the viability of the business."
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