Peloton down in after-hours trading despite posting revenue, EPS beat

Peloton reported earnings that outperformed expectations, with the company posting $1.06B in fiscal second quarter revenue and an adjusted EPS of $.18, compared to consensus estimates of $1.03B in revenue and $.10 in EPS. Yahoo Finance’s Ines Ferre joined Yahoo Finance Live to break down the other key metrics.

Video Transcript

SEANA SMITH: All right, guys, stand by. We want to get to some breaking news. Peloton is out with its earnings reports. Ines Ferre has those numbers for us. Ines?

INES FERRE: And Seana, it's a beat on the top line and also on the bottom line, with Peloton's fiscal second quarter revenue coming in at $1.06 billion. The estimates were for $1.03 billion. It's boosting its full-year forecast. Also, as far as adjusted earnings is concerned, those came in at $0.18 a share and the Street was expecting $0.10 a share. Meanwhile, also, Peloton is seeing its third quarter connected fitness subscribers that will come in at 1.9 million, the estimates were for 1.93 million. However, the shares are under pressure because Peloton is saying that it can't keep up with demands.

Profits will be squeezed because of this. Investors in this earnings report-- we're going to look for any commentary that has to do with supply chain issues, especially those high-end Bike+. Also, remember that last year, the company had announced that it was buying Precor, it's an equipment provider with factories in North Carolina, also in Washington, to try and help with the supply chain issues. And also any further commentary, of course, whether this at-home fitness trend will continue beyond the pandemic. But right now we're seeing that shares are under pressure in after-hours, Seana.