New Peloton CEO will be under harsh scrutiny when the company reports earnings this week

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New Peloton CEO Barry McCarthy will be under harsh scrutiny when the company reports earnings this week

MKM Partners managing director Rohit Kulkarni said he expects Peloton will have to revisit its cost structure this week. The company will likely need to make additional and "somewhat painful but fiscally prudent cost-savings measures," he said.

Kulkarni also said he will be looking for Peloton to detail any initial reactions from consumers to the recent price drops and to the looming subscription fee hike. Peloton previously said it expected to end its fiscal third quarter with 2.93 million connected fitness subscribers. Peloton's monthly average connected fitness churn rate, which stood at 0.79% as of Dec. 31, is a metric that allows for analysts and investors to track just that. The lower the churn, the better news for Peloton, because it means people are sticking around and still paying for content.

 

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