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Uber & Lyft Share A Ride This Week With Q1 Results
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Ridesharing giants are on deck this week as they prepare to release their March quarter earnings. Both Uber (UBER - Free Report) & Lyft (LYFT - Free Report) have experienced substantial volatility as investors wait for more color on these firms' liquidity and change in profitability timelines.
Ridesharing has seen a substantial slowdown as many riders and drivers remain at home amid this pandemic, but the services remain operational. The absence of big city commuting, airport trips, and rides to restaurants & bars are going to weigh heavily on these ridesharing platforms for some time. It will be a slow recovery for the space, and investors just hope they have the capital to remain in business until demand recuperates.
Both of the ridesharing giants have withdrawn 2020 guidance amidst the economic uncertainty.
Lyft
Lyft will be first to report after market close on Wednesday, May 6th. This # 2 player has seen a more substantial hit than its rival. LYFT shares declined over 35% so far this year, despite rallying 70% from its lows in March. Investors are concerned about liquidity, and its (nearly) pure-play ridesharing strategy could be working against them amid this pandemic.
According to Zacks Consensus estimates, Lyft is expected to report an EPS of -$0.68 on sales of $878.88 million, which would represent a year-over-year increase of 92% and 13%, respectively. Color on profitability timelines and capitalization to remain afloat will be crucial for price action. Lyft previously stated it would report a positive EBITDA by the 4th quarter of 2021, but this may no longer be attainable given the circumstances.
Uber
Uber previously claimed it would achieve full-year EBITDA profitable by 2021, which will likely also be pushed back. UBER is a less concerning investment because of its massive cash pile & access to capital, combined with its broad portfolio of operations that may hedge some of its ridesharing risks. UBER shares are only down 5.6% in 2020 thus far.
Uber Technologies, Inc. Price, Consensus and EPS Surprise
Many drivers have turned to food delivery, allowing them to have less contact with customers and, at the same time, service the growing demand in the space.
Uber Eats performance is one to focus on in this week's report as it continues to gain traction in the growing food delivery segment.
Uber is reporting after the closing bell on May 7th. According to Zacks Consensus estimates, we are expecting to see an EPS of -$0.79 on sales of $3.38 billion, which would represent year-over-year growth of 65% and 9%, respectively.
Recent Development
L.A., San Fran, and San Diego are all suing Uber and Lyft for driver misclassification. Ridesharing's home turf is fighting against the gig economy as many of these gig workers are financially suffering from the pandemic. If Uber and Lyft were forced to reclassify its drivers as full-time employees, this would significantly hinder these firms' ability to profit as its cost of human capital would substantially increase.
Key Takeaway
Uber and Lyft have been fighting an uphill battle the past couple of months as the world stays home. This upcoming earnings report will not make or break these companies. Q2 earnings are expected to be sizably worse than Q1. Any color on how these businesses have been faring in the past month could be a major price driver.
Both companies have withdrawn guidance, so look towards management's sentiment in the respective earnings calls. Financial positioning is also going to be important to how investors perceive each investments' relative risk.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Uber & Lyft Share A Ride This Week With Q1 Results
Ridesharing giants are on deck this week as they prepare to release their March quarter earnings. Both Uber (UBER - Free Report) & Lyft (LYFT - Free Report) have experienced substantial volatility as investors wait for more color on these firms' liquidity and change in profitability timelines.
Ridesharing has seen a substantial slowdown as many riders and drivers remain at home amid this pandemic, but the services remain operational. The absence of big city commuting, airport trips, and rides to restaurants & bars are going to weigh heavily on these ridesharing platforms for some time. It will be a slow recovery for the space, and investors just hope they have the capital to remain in business until demand recuperates.
Both of the ridesharing giants have withdrawn 2020 guidance amidst the economic uncertainty.
Lyft
Lyft will be first to report after market close on Wednesday, May 6th. This # 2 player has seen a more substantial hit than its rival. LYFT shares declined over 35% so far this year, despite rallying 70% from its lows in March. Investors are concerned about liquidity, and its (nearly) pure-play ridesharing strategy could be working against them amid this pandemic.
Lyft, Inc. Price, Consensus and EPS Surprise
Lyft, Inc. price-consensus-eps-surprise-chart | Lyft, Inc. Quote
According to Zacks Consensus estimates, Lyft is expected to report an EPS of -$0.68 on sales of $878.88 million, which would represent a year-over-year increase of 92% and 13%, respectively. Color on profitability timelines and capitalization to remain afloat will be crucial for price action. Lyft previously stated it would report a positive EBITDA by the 4th quarter of 2021, but this may no longer be attainable given the circumstances.
Uber
Uber previously claimed it would achieve full-year EBITDA profitable by 2021, which will likely also be pushed back. UBER is a less concerning investment because of its massive cash pile & access to capital, combined with its broad portfolio of operations that may hedge some of its ridesharing risks. UBER shares are only down 5.6% in 2020 thus far.
Uber Technologies, Inc. Price, Consensus and EPS Surprise
Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote
Many drivers have turned to food delivery, allowing them to have less contact with customers and, at the same time, service the growing demand in the space.
Uber Eats performance is one to focus on in this week's report as it continues to gain traction in the growing food delivery segment.
Uber is reporting after the closing bell on May 7th. According to Zacks Consensus estimates, we are expecting to see an EPS of -$0.79 on sales of $3.38 billion, which would represent year-over-year growth of 65% and 9%, respectively.
Recent Development
L.A., San Fran, and San Diego are all suing Uber and Lyft for driver misclassification. Ridesharing's home turf is fighting against the gig economy as many of these gig workers are financially suffering from the pandemic. If Uber and Lyft were forced to reclassify its drivers as full-time employees, this would significantly hinder these firms' ability to profit as its cost of human capital would substantially increase.
Key Takeaway
Uber and Lyft have been fighting an uphill battle the past couple of months as the world stays home. This upcoming earnings report will not make or break these companies. Q2 earnings are expected to be sizably worse than Q1. Any color on how these businesses have been faring in the past month could be a major price driver.
Both companies have withdrawn guidance, so look towards management's sentiment in the respective earnings calls. Financial positioning is also going to be important to how investors perceive each investments' relative risk.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>