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
-
Reasons to Consider Taking Another Look at GoldThe cycle of excessive borrowing to finance government expenditures, grants and aid of all kinds beyond taxable GDP and productivity might not end well.
-
How Trump’s Tariffs Could Impact Your Grocery BillTariffs at the checkout: Preparing for higher grocery bills and how to manage them.
-
Six Steps to Simplify Your Estate for Your HeirsA simplified estate strategy will expedite the settlement of your estate after you're gone, lower audit risk, reduce costs and cut your beneficiaries' stress.
-
Three Actions to Protect Wealth Transfer Amid Tax UncertaintyHow should families plan to pass on their wealth amid ongoing uncertainty over estate taxes? Even if TCJA provisions are extended, they might still be temporary.
-
Business Owners: How to Calculate Your Wealth Gap in Five MinutesHow much would you need from the sale of your business to retire without sacrificing your lifestyle? This simple calculation will give you an idea.
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
10 Ways to Refine Your Financial Plan for a More Secure FutureSignificant benefits throughout the rest of the year can be had if you take some time now to revisit your financial plan and adjust accordingly.
-
The Most Important Number for a Business Owner Considering a SaleCompany owners hoping to sell and stop working won't know whether an offer on their business is good enough unless they know their 'wealth gap.'Evan
-
Stock Market Today: Dow Drops 670 Points on Trade War EffectA prodigious rally by the battered leader of the AI revolution typified an increasingly volatile picture for investors, traders and speculators.
-
Dividing an Estate? Five Ways to Create TransparencyLetting your children know your intentions while you're still around to explain your reasoning, and while you can make adjustments, can limit discontent later.
