A month has gone by since the last earnings report for Lyft (LYFT Quick QuoteLYFT - Free Report) . Shares have lost about 12.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Lyft due for a breakout? 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 catalysts.

Earnings Beat at Lyft in Q1

Lyft reported first-quarter 2024 earnings of 15 cents per share which beat the Zacks Consensus Estimate of 9 cents and improved year over year.

Revenues of $1,277.2 million also outpaced the Zacks Consensus Estimate of $1,170.1 million and improved 27.6% year over year, reflecting growth in the rideshare market. Active riders increased 12% year over year to 21.9 million.

Revenue per active rider increased year over year to $56.67.Gross bookings reported for the quarter were $3.69 billion, marking a year-over-year increase of 21%.

Lyft’s adjusted EBITDA in the first quarter was $59.4 million. The adjusted EBITDA margin (calculated as the percentage of gross bookings) was 1.6%.

Lyft exited the first quarter with cash and cash equivalents of $507.91 million compared with $558.63 million at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $942.17 million compared with $839.36 million at prior quarter-end.

Guidance

For the second quarter of 2024, LYFT expects gross bookings of $4.0 - $4.1 billion, which reflects year over year growth of 16-19%.The adjusted EBITDA is estimated to be $95-100million and adjusted EBITDA margin (calculated as a percentage of gross bookings) is expected to be around 2.4%.

For 2024, Lyft continues to anticipate rides year-over-year growth in the mid-teens. Adjusted EBITDA margin (calculated as a percentage of gross bookings) is expected to be around 2.1%.

Lyft remains on track to achieve positive free cash flow for the full year. Given its improved visibility into the first half of the year, Lyft now anticipates to convert at least 70% of adjusted EBITDA to free cash flow for the full-year 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 39.71% due to these changes.

VGM Scores

Currently, Lyft has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Lyft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Lyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG Quick QuoteGOOG - Free Report) , has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.

Alphabet reported revenues of $67.59 billion in the last reported quarter, representing a year-over-year change of +16.4%. EPS of $1.89 for the same period compares with $1.17 a year ago.

Alphabet is expected to post earnings of $1.87 per share for the current quarter, representing a year-over-year change of +29.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Alphabet. Also, the stock has a VGM Score of C.