Shares of Peloton Interactive (PTON) are up 10% after the maker of internet-connected exercise bikes and treadmills reported better-than-expected financial results.
The New York City-based company showed that its quarterly loss narrowed for what was its fiscal fourth quarter, sending the stock higher.
Peloton announced a loss of $0.08 U.S. per share for its latest quarter. That was much better than a loss of $0.17 U.S. a share expected on Wall Street.
Revenue in the period totaled $643.6 million U.S. That too was better than the $628 million U.S. in sales forecast among analysts who track the company’s progress.
Peloton has struggled with waning demand for its fitness bikes and treadmills since the Covid-19 pandemic ended.
In May of this year, the company announced a turnaround plan that included cost-cutting initiatives and staff layoffs. Peloton also announced that chief executive officer (CEO) Barry McCarthy was resigning.
More recently, Peloton has announced a partnership with Google parent company Alphabet (GOOG/GOOGL).
Alphabet announced earlier in August that its Fitbit Premium users will have access to a library of video workout classes from Peloton.
In terms of forward guidance, Peloton said that it expects fiscal 2025 revenue of $2.40 billion U.S. to $2.50 billion U.S. The outlook fell short of analyst expectations that called for sales of $2.69 billion U.S.
Peloton also said that it expects fiscal 2025 paid connected fitness subscriptions of 2.68 million to 2.75 million. That outlook too was below Wall Street estimates of 2.98 million.
Prior to today (Aug. 22), the stock of Peloton had declined 52% in the last 12 months to trade at $3.36 U.S. per share.
