Peloton Interactive  (PTON) – Get Free Report shares edged higher in pre-market trading ahead of the fitness equipment maker’s fourth quarter earnings prior to the opening bell.

Analysts expect Peloton’s adjusted loss to narrow notably from last year, to around 38 cents per share for its fiscal fourth quarter, even as revenues fall by around 6% to $640 million, as the group slashes costs with store closures, layoffs and third-party partnerships under CEO Barry McCarthy. 

Peloton’s own forecast pegged revenues in the region of $630 million to $640 million, with CFO Liz Coddington suggesting the group was “within striking distance of achieving free cash flow breakeven. The progress that we’ve made is very positive and continues to be positive.”

Earlier this spring, however, Peloton lowered its forecast for total subscribers on its connected fitness platform, a key cash generator, to between 3.08 and 3.09 million by the end of its fiscal year.

“Our forecast assumes that we will maintain a strong financial discipline and we will not overspend either via media spending or by cutting prices or slashing them to acquire unprofitable subscribers,” Coddington told investors in May.

Peloton shares were marked 0.67% higher in pre-market trading to indicate an opening bell price of $7.00 each, a move that would leave the stock down 12% for the year and nearly 96% from its pandemic era peak in December of 2020.

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