Peloton stock falls 10% after earnings, weak third-quarter revenue guidance

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Peloton Interactive Inc. fell more than 10% in extended trading after the company beat consensus estimates but issued revenue guidance that was below fiscal third-quarter expectations.

Peloton PTON, -2.30%  reported a fiscal second-quarter net loss of $55.4 million, or 20 cents a share, versus a loss of $55.1 million in the year-ago period.

Revenue rose to $466.3 million from $262.9 million a year ago.

Analysts surveyed by FactSet had estimated a loss of 34 cents a share on revenue of $423.7 million. For the fiscal third quarter, analysts model a loss of 20 cents a share on revenue of $494 million.

Peloton said that it expects fiscal third-quarter revenue of $470 million to $480 million and full-year revenue of $1.53 billion to $1.55 billion.

Wall Street expects full-year revenue of $1.49 billion.

See also: Peloton says it’s ‘disappointed’ by how its viral ad was ‘misinterpreted’

Peloton in December released a 30-second ad that was criticized as “sexist” and “dystopian,” causing the stock to call roughly 9% after backlash to the spot spread across the internet.

Despite outrage over the ad, SunTrust Robinson Humphrey analyst Youssef Squali wrote in a note to clients Monday that “if anything, this has raised more awareness around the brand and the offering.” Squali cited Google search interest, which reached its highest level since 2004 around the period the commercial first appeared.

Short-seller Citron Research penned a December report about Peloton, setting a $5 price target and arguing that the company’s strategy is flawed and its hardware isn’t competitive. Citron said in the report that the company didn’t deserve the premium multiple it traded at.

Don’t miss: Peloton shares could be headed to $5, short-seller Citron Research says

Peloton stock has gained 43% in the past three months, as the S&P 500 index SPX, +1.13%  rose 7.3% in that time.