It has been about a month since the last earnings report for Lyft (LYFT). Shares have lost about 14.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lyft due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Lyft Beats on Revenues in Q4
Lyft reported fourth-quarter 2021 earnings (excluding 84 cents from non-recurring items) of 9 cents per share, in line with the Zacks Consensus Estimate. In the year-ago period, the company had incurred a loss due to significant decline in ride volumes as a result of coronavirus-led woes.
Total revenues of $969.9 million surpassed the Zacks Consensus Estimate of $942.9 million. The top line jumped 70.2% year over year owing to 49.2% increase in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app), which totaled 18.73 million in the reported quarter. This San-Francisco-based company’s Revenue per Active Rider increased 14.1% year over year to $45.63.
Lyft’s fourth-quarter performance improved sequentially as well, reflecting continued recovery in rideshare rides. Total revenues increased 12% from the third quarter of 2021 with a 13.5% rise in Revenue per Active Rider.
Lyft’s adjusted EBITDA in the fourth quarter was $74.7 million against adjusted EBITDA loss of $150 million in the year-ago period. The same improved by $7.4 million sequentially. This marks the company’s third straight quarter of generating adjusted EBITDA profits. Adjusted EBITDA margin for the fourth quarter was 7.7% against adjusted EBITDA loss margin of 26.3% in the year-ago period. In the third quarter of 2021, adjusted EBITDA margin was 7.8%.
Total costs and expenses climbed 19.1% year over year to $1.22 billion in the quarter. Contribution improved 83% year over year to $578.8 million. Contribution margin increased to 59.7% from 55.5% in the year-ago period. Lyft, carrying a Zacks Rank #4 (Sell), exited the fourth quarter with unrestricted cash, cash equivalents and short-term investments of $2.3 billion compared with $2.25 billion at the end of 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -59.59% due to these changes.
VGM Scores
Currently, Lyft has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren’t focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Lyft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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