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
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Serious Medical Diagnosis? Four Financial Steps to TakeA serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
-
What Wall Street's CEOs Are Saying About Trump's TariffsWe're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
-
To Stay on Track for Retirement, Consider Doing ThisWriting down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
-
How to Make Changing Interest Rates Work for Your RetirementHigher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
-
When to Sell Your StockKnowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
-
Within Five Years of Retirement? Five Things to Do NowIf you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
