Ride sharing service Lyft (NASDAQ: LYFT) will be reporting results tomorrow after market close. Here’s what investors should know.
Lyft missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.55 billion, up 26.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 24.7 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 15% year on year to $1.47 billion, slowing from the 27.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 2.4% on average.
Looking at Lyft’s peers in the gig economy segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Angi’s revenues decreased 19.5% year on year, beating analysts’ expectations by 2.7%, and Upwork reported flat revenue, topping estimates by 2.2%. Upwork traded up 18% following the results.
Read our full analysis of Angi’s results here and Upwork’s results here.
There has been positive sentiment among investors in the gig economy segment, with share prices up 20.6% on average over the last month. Lyft is up 30.5% during the same time and is heading into earnings with an average analyst price target of $16.04 (compared to the current share price of $13.01).
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