What happened
Connected fitness products company shares Peloton Interactive (NASDAQ: PTON) jumped sharply on Thursday. The shares ended the session with an increase of more than 7%.
The growth stock was probably rising in anticipation of the company’s quarterly results after the market closed. Some investors can expect an explosive quarter.
Image source: Peloton Interactive.https: //press.onepeloton.com/#logos
And
With Peloton’s second quarter fiscal results now released, it is clear that the company enjoyed an impressive boost during the period. But, based on the movement of shares in after-hours trading, investors can expect even better results. As of 4:15 pm EST in after-hours trading, the stock fell more than 5%, trading close to the start of the day.
Peloton’s second-quarter tax revenue skyrocketed 128% year-over-year, to $ 1.06 billion, beating the revenue analyst consensus forecast of $ 1.03 billion. Earnings per share (EPS) was $ 0.18, up from a loss of $ 0.20 in the previous year’s quarter. On average, analysts had expected earnings per share of $ 0.09.
It is important to note that the company’s connected fitness subscriptions increased 134% year over year.
What now
After-hours trading, which is not as liquid as trading during normal trading hours, is not necessarily a good representation of how the shares will trade when the market opens tomorrow. Therefore, it is difficult to know exactly how the market will react to the newly released earnings report tomorrow. For now, however, it seems that the results did not correspond to the market’s view.
One thing is certain: Peloton’s commercial momentum remains impressive.