11:32 AM EDT, 10/31/2024 (MT Newswires) -- Shares of Peloton Interactive ( PTON ) surged intraday Thursday after the fitness company said that it tapped Ford's (F) Peter Stern to serve as its new chief executive while reporting better-than-expected fiscal first-quarter results.

Revenue dipped to $586 million for the three months ended Sept. 30 from $595.5 million the year earlier but topped the $571.7 million average analyst estimate on Capital IQ. Subscription revenue rose 3% year over year to $426.3 million while connected fitness product sales declined 12% to $159.6 million.

The company broke even on a GAAP-earnings-per-share basis, compared with a $0.44 loss in the same period of fiscal 2024 and analysts' expectation for a $0.15 loss. "We're achieving our cost savings targets faster than we expected," Peloton wrote in a shareholder letter.

Shares of Peloton surged 25% in Thursday trade.

Peloton announced a restructuring plan in May to reduce annual run-rate expenses by more than $200 million by the end of fiscal 2025. By the end of the first quarter, the company made all the payroll-related changes that will deliver more than $100 million in annualized savings, Chief Financial Officer Liz Coddington told analysts on a Thursday conference call, according to a Capital IQ transcript.

Separately, Peloton said that Ford executive Stern will become CEO on Jan. 1, replacing Barry McCarthy, who stepped down in May. Currently, Stern serves as president of integrated services at Ford. Prior to joining Ford, Stern served in various roles at Apple ( AAPL ) .

Karen Boone and Chris Bruzzo assumed the role of interim co-CEOs and co-presidents in May. Boone will serve as sole interim CEO and president through the end of the year, while Bruzzo steps down as interim co-CEO and president on Nov. 1, Peloton said. Both will remain members of the Peloton board.

Ford said in a filing that Stern plans to resign, effective Dec. 15. Ford Chief Enterprise Technology Officer Michael Amend will lead Ford Integrated Services on an interim basis.

Peloton affirmed its fiscal 2025 revenue outlook in the $2.4 billion to $2.5 billion range and raised its free cash flow target by $50 million to at least $125 million. The Capital IQ consensus is for revenue of $2.48 billion in the ongoing year. For the fiscal second quarter, the company is predicting revenue between $640 million and $660 million, reflecting a sequential increase of $64 million at the midpoint. The Street's view is for revenue of $665.2 million in the current quarter.

Price: 8.83, Change: +2.18, Percent Change: +32.83