Ride sharing service Lyft (NASDAQ: LYFT) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Lyft beat analysts’ revenue expectations by 5.5% last quarter, reporting revenues of $1.52 billion, up 31.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 24.4 million users, up 8.9% 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 27.7% year on year to $1.56 billion, improving from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lyft has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.
Looking at Lyft’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Uber delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 1.6%, and Alphabet reported revenues up 11.8%, in line with consensus estimates. Uber’s stock price was unchanged after the results, while Alphabet was down 7.2%.
Read our full analysis of Uber’s results here and Alphabet’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 10.6% on average over the last month. Lyft is up 11.9% during the same time and is heading into earnings with an average analyst price target of $18.80 (compared to the current share price of $14.54).
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