Lyft (LYFT) stock is racing up the price charts Thursday after the ride-sharing company beat top- and bottom-line expectations for its third quarter and raised its full-year outlook.
In the three months ended September 30, Lyft's revenue increased 31.5% year over year to $1.5 billion, boosted by a 15.6% jump in gross bookings to $4.1 billion. Its earnings per share (EPS) improved 20.8% from the year-ago period to 29 cents.
"Our team delivered one of the strongest quarters in Lyft history, following the many new innovations we've brought to drivers and riders so far this year," said Lyft CEO David Risher in a statement. "Going forward, our work with best-of-breed partners and the autonomous future we're building will give people even more reasons to choose Lyft every time."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $1.4 billion and earnings of 20 cents per share, according to CNBC.
As a result of its strong performance in the first nine months of 2024, Lyft raised its outlook for the full year. It now expects to achieve gross bookings growth of approximately 17%, up from its previous forecast of "growth that is slightly faster than Rides growth year-over-year" and ahead of analysts' expectations of 16.3% growth.
Lyft also provided its outlook on the fourth quarter, calling for gross bookings in the range of $4.28 billion to $4.35 billion, representing year-over-year growth of 15% to 17% and ahead of analysts' expectations of $4.23 billion.
Is Lyft stock a buy, sell or hold?
Heading into Thursday's session, Lyft stock was down 4% for the year to date, but Wall Street was anticipating a comeback. According to S&P Global Market Intelligence, the consensus recommendation among covering analysts is a Buy.
And analysts' average price target of $16.72 represented implied upside of 16% to October 6 close. This target price now sits at a discount to the industrial stock's post-earnings price, which may prompt analysts to lift their price targets in response.
Indeed, financial services firm Wedbush raised its price target to $20 from $12 following the earnings release, but maintained its a Neutral rating (equivalent to a Hold) on the mid-cap stock.
"We are encouraged by positive commentary in the quarter suggesting healthy progress along product initiatives and new partnerships," says Wedbush analyst Scott Devitt. "That said, we continue to view management's longer-term targets with some skepticism, and we remain sidelined as we wait for clear evidence of a more sustainable growth trajectory for the business."
Related Content
-
Stock Market Today: Stocks Soar on China Trade Talk HopesTreasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort BenefitsPlan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
-
How Can Investors Profit From AI's Energy Use?Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
-
Can Trump Fire Powell? A Supreme Court Case Could DecidePresidential posts threaten to overwhelm decades of precedent and tradition, whatever the nine justices decide.
-
What Are AI Agents and What Can They Do for You?AI agents promise to be the next big thing in artificial intelligence, but what exactly do they do?
-
Should You Buy an iPhone Now Before Tariffs Hit?Looming tariffs can make an iPhone purchase seem urgent. Here's what to do if you need another phone but want to save money.
-
SRI Redefined: Going Beyond Socially Responsible InvestingNow that climate change has progressed to a changed climate, sustainable investing needs to evolve to address new demands of resilience and innovation.
-
Here's When a Lack of Credit Card Debt Can Cause You ProblemsUsually, getting a new credit card can be difficult if you have too much card debt, but this bank customer ran into an issue because he had no debt at all.
-
33 Stocks That Could Rally 50% or More This YearAnalysts say these S&P 500 stocks have at least 50% price upside over the next year or so.
