(Reuters) -Peloton Interactive ( PTON ) shares jumped more than 7% in premarket trading on Friday after the fitness company beat quarterly revenue estimates, buoyed by early traction from its revamped product lineup and price hikes across hardware and subscriptions, reinforcing investor confidence in its turnaround strategy.

The upbeat results mark a turning point for Peloton under CEO Peter Stern, who took the helm in January and has focused on restoring profitability, streamlining operations, and repositioning the brand for growth through a refreshed product lineup and pricing strategy.

"We are encouraged by Peloton's progress across improving profit, ramping free cash flow, and deleveraging," J.P.Morgan analysts said. "But it remains to be seen whether product and marketing initiatives are significant enough to drive durable revenue growth."

Peloton recently re-launched its product portfolio with AI-powered features and raised prices across hardware and subscriptions and its move comes as shoppers pull-back spending on big-ticket discretionary items amid an unsteady economic environment.

The company reported revenue of $550.8 million for the quarter, topping analysts' average estimate of $539.82 million, as per data compiled by LSEG.

The stock trades at a price-to-earnings ratio of 79.95, reflecting expectations for continued earnings momentum.