Lyft (LYFT) Stock Soars: Surpassing Sales Predictions and Forecasting Robust Demand

• Lyft stock saw a surge in trading following its better-than-expected Q1 earnings and sales report.
• The ride-hail company also provided an optimistic forecast for demand in the current quarter.
• The company’s gross bookings for the first quarter were $3.7 billion, a 21% increase year-over-year.

Lyft’s stock rises following a positive Q1 report, with gross bookings surpassing analyst expectations and a promising forecast for the current quarter.

Lyft’s Q1 Earnings Exceed Expectations

Lyft reported an adjusted earning of 15 cents per share on sales of $1.28 billion for the quarter ending in March. Analysts had projected earnings of 6 cents per share on sales of $1.16 billion. In comparison, Lyft posted adjusted earnings of 8 cents per share on sales of $1 billion for the same period a year earlier.

Forecast for Current Quarter

For the current quarter, Lyft has guided for gross bookings between $4 billion and $4.1 billion. This surpasses analyst projections of $3.98 billion for the June-ending period.

Lyft Rides Up 23%

Lyft’s gross bookings for the first quarter were $3.7 billion, a 21% increase year-over-year. This exceeded the analyst consensus of $3.6 billion. Revenue growth also accelerated to 28% year-over-year for the quarter, compared to 4% growth in the fourth quarter of 2023. The company connected 188 million rides during the first quarter, a 23% increase year over year. Active riders also increased 12% to 21.9 million.

Cost Cutting and Profitability

Lyft’s leadership has been focusing on cutting costs and working towards profitability. CFO Erin Brewer noted that the company has had positive free cash flow for two consecutive quarters. On the basis of generally accepted accounting principles, Lyft lost 8 cents per share in the first quarter, compared to a 50 cent per share loss for the same period a year earlier.

Lyft Stock: Technical Ratings

Prior to earnings, Lyft fell 5% in Tuesday trading. However, shares have gained 10.7% this year compared to an 8.8% gain for the S&P 500. Lyft stock is up 92% from 12 months ago, compared to a 25% gain for the S&P 500. Lyft stock had an IBD Composite Rating of 87 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better. Lyft’s IBD Relative Strength Rating was 96 out of 99.

Conclusion

Lyft’s Q1 report shows promising growth and profitability, with gross bookings and active riders increasing year-over-year. The company’s positive free cash flow and cost-cutting measures also indicate a strong financial position. With a positive outlook for the current quarter, Lyft’s stock is expected to continue its upward trend.