It has been about a month since the last earnings report for Lyft (LYFT Quick QuoteLYFT - Free Report) . Shares have lost about 12.4% 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 drivers.

Earnings Beat at Lyft in Q3

Lyft reported third-quarter 2024 earnings of 29 cents per share which beat the Zacks Consensus Estimate of 20 cents and improved year over year.

Revenues of $1.52 billion also outpaced the Zacks Consensus Estimate of $1.42 billion and improved 31.5% year over year, reflecting growth in the rideshare market. Active riders increased 9% year over year to 24.4 million.

Gross bookings reported for the quarter were $4.10 billion, marking a year-over-year increase of 16%.

Lyft’s adjusted EBITDA in the third quarter was $107.3 million, up 16.6% from the year-ago reported figure. The adjusted EBITDA margin (calculated as the percentage of gross bookings) was 2.6%, was flat year-over-year.

Lyft exited the third quarter with cash and cash equivalents of $770.29 million compared with $604.35 million at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $574.47 million compared with $578.33 million at prior quarter-end.

LYFT’s Guidance

For the fourth quarter of 2024, LYFT expects gross bookings of $4.28 - $4.35 billion (up 15-17% year-over-year). The adjusted EBITDA is estimated to be $100-105 million and adjusted EBITDA margin (calculated as a percentage of gross bookings) is expected to be 2.3-2.4%.

For 2024, Lyft continues to anticipate rides year-over-year growth in the mid-teens. Gross bookings is anticipated to grow almost 17% year-over-year.

Adjusted EBITDA margin (calculated as a percentage of gross bookings) is expected to be around 2.3%, higher than the prior expectation of 2.1%. Free cash flow is anticipated to exceed $650 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 285.71% due to these changes.

VGM Scores

Currently, Lyft has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. 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. It comes with little surprise Lyft has a Zacks Rank #2 (Buy). We expect an above average 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, DoorDash, Inc. (DASH Quick QuoteDASH - Free Report) , has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

DoorDash reported revenues of $2.71 billion in the last reported quarter, representing a year-over-year change of +25.1%. EPS of $0.38 for the same period compares with -$0.19 a year ago.

For the current quarter, DoorDash is expected to post earnings of $0.33 per share, indicating a change of +184.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.9% over the last 30 days.

DoorDash has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.