Ride sharing service Lyft (NASDAQ: LYFT) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Lyft beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $1.44 billion, up 40.6% year on year. It was a strong quarter for the company, with exceptional revenue growth and a solid beat of analysts’ EBITDA estimates. It reported 23.7 million users, up 10.3% year on year.
Is Lyft a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lyft’s revenue to grow 24.5% year on year to $1.44 billion, improving from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lyft has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Lyft’s peers in the gig economy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. DoorDash delivered year-on-year revenue growth of 25%, beating analysts’ expectations by 1.8%, and Fiverr reported revenues up 7.7%, topping estimates by 3.4%. DoorDash’s stock price was unchanged after the results, and Fiverr’s price followed a similar reaction.
Read our full analysis of DoorDash’s results here and Fiverr’s results here.
There has been positive sentiment among investors in the gig economy segment, with share prices up 6.3% on average over the last month. Lyft is up 8.5% during the same time and is heading into earnings with an average analyst price target of $15.41 (compared to the current share price of $13.57).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.