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Lyft (LYFT) Up 30.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Lyft (LYFT - Free Report) . Shares have added about 30.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Lyft Beats on Revenues in Q3
Lyft incurred a loss (excluding 56 cents from non-recurring items) of 90 cents per share in the third quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 89 cents. Total revenues of $499.7 million beat the Zacks Consensus Estimate of $497.4 million.
The top line also recovered significantly in the third quarter from the second, with gradual improvement in ride volumes following easing coronavirus-induced restrictions. Total revenues surged 48% sequentially in the third quarter.
However, the top line declined 47.7% year over year due to fall in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app) and Revenue per Active Rider, indicating that ride volumes are still way below year-ago levels as coronavirus concerns continue unabated.
Active Riders declined 44% year over year to 12.51 million in the quarter under review. This San Francisco-based company’s Revenue per Active Rider slipped 7% to $39.94 million.
Adjusted-EBITDA loss for the third quarter was $239.7 million compared with a loss of $128.1 million incurred a year ago. The adjusted-EBITDA loss margin came in at 48% compared with 13.4% in third-quarter 2019. Total costs and expenses contracted 34.1% year over year to $953.1 million in the quarter.
Contribution deteriorated 48.1% year over year to $248.8 million. Contribution margin slid to 49.8% from 50.1% a year ago. Lyft, carrying a Zacks Rank #5 (Strong Sell), exited the third quarter with unrestricted cash (cash and cash equivalents + short-term investments) of $2.45 billion compared with $2.85 billion at the end of 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -19.04% due to these changes.
VGM Scores
At this time, Lyft has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lyft has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Lyft (LYFT) Up 30.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Lyft (LYFT - Free Report) . Shares have added about 30.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Lyft Beats on Revenues in Q3
Lyft incurred a loss (excluding 56 cents from non-recurring items) of 90 cents per share in the third quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 89 cents. Total revenues of $499.7 million beat the Zacks Consensus Estimate of $497.4 million.
The top line also recovered significantly in the third quarter from the second, with gradual improvement in ride volumes following easing coronavirus-induced restrictions. Total revenues surged 48% sequentially in the third quarter.
However, the top line declined 47.7% year over year due to fall in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app) and Revenue per Active Rider, indicating that ride volumes are still way below year-ago levels as coronavirus concerns continue unabated.
Active Riders declined 44% year over year to 12.51 million in the quarter under review. This San Francisco-based company’s Revenue per Active Rider slipped 7% to $39.94 million.
Adjusted-EBITDA loss for the third quarter was $239.7 million compared with a loss of $128.1 million incurred a year ago. The adjusted-EBITDA loss margin came in at 48% compared with 13.4% in third-quarter 2019. Total costs and expenses contracted 34.1% year over year to $953.1 million in the quarter.
Contribution deteriorated 48.1% year over year to $248.8 million. Contribution margin slid to 49.8% from 50.1% a year ago. Lyft, carrying a Zacks Rank #5 (Strong Sell), exited the third quarter with unrestricted cash (cash and cash equivalents + short-term investments) of $2.45 billion compared with $2.85 billion at the end of 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -19.04% due to these changes.
VGM Scores
At this time, Lyft has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lyft has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.