Ride sharing service Lyft (NASDAQ: LYFT) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter Lyft reported revenues of $1.05 billion, up 21.9% year on year, missing analyst expectations by 0.65%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and an underwhelming revenue guidance for the next quarter. The company reported 20.3 million paying users, up 7.23% year on year.
Is Lyft buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Lyft's revenue to grow 19% year on year to $1.15 billion, slowing down from the 70.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing four upward and five downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 3.31%.
Looking at Lyft's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Meta's revenues decreased 4.47% year on year, beating analyst estimates by 1.5% and Snap reported revenues up 0.14% year on year, missing analyst estimates by 0.62%. Meta traded up 13% on the results, Snap was down 14.5%. Read our full analysis of Meta's results here and Snap's results here.
There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 34.3% over the last month. Lyft is up 49.9% during the same time, and is heading into the earnings with analyst price target of $21.58, compared to share price of $17.99.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.