Stock Story -
Ride sharing service Lyft (NASDAQ: LYFT) will be reporting results tomorrow before market open. Here's what investors should know.
Lyft beat analysts' revenue expectations by 10.2% last quarter, reporting revenues of $1.28 billion, up 27.7% year on year. It was a strong quarter for the company, with decent top-line growth and solid growth in its users. It reported 21.9 million users, up 12% year on year.
Is Lyft a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Lyft's revenue to grow 35.7% year on year to $1.39 billion, improving from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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 consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. DoorDash (NASDAQ:DASH) delivered year-on-year revenue growth of 23.3%, beating analysts' expectations by 3.6%, and Fiverr (NYSE:FVRR) reported revenues up 5.9%, in line with consensus estimates. DoorDash traded up 8.4% following the results while Fiverr was also up 6.3%.
Read the full analysis of DoorDash's and Fiverr's results on StockStory.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. Lyft is down 20.2% during the same time and is heading into earnings with an average analyst price target of $19.2 (compared to the current share price of $10.75).
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