Ride sharing service Lyft (NASDAQ: LYFT) will be reporting earnings tomorrow after market hours. Here's what to look for.
Last quarter Lyft reported revenues of $1 billion, up 3% year on year, missing analyst expectations by 0.2%. It was a mixed quarter for the company, with optimistic revenue guidance for the next quarter but slow revenue growth. The company reported 21.5 million users, up 8.2% 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 8.4% year on year to $1.1 billion, slowing down from the 21.9% 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.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Lyft's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Booking delivered top-line growth of 21.3% year on year, beating analyst estimates by 1.1% and Udemy reported revenues up 16.6% year on year, exceeding estimates by 3.6%. Booking traded down 3.8% on the results, Udemy was up 13%.
Read our full analysis of Booking's results here and Udemy's results here.
Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.6% over the last month. Lyft is down 4.1% during the same time, and is heading into the earnings with analyst price target of $12.3, compared to share price of $10.5.
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The author has no position in any of the stocks mentioned.