LYFT Shares Jump 13% Following Q3 Earnings & Revenues Beat

Lyft’s LYFT shares surged 13.1% in after-market trading on Nov 2 following its strong third-quarter 2021 performance with better-than-expected earnings and revenues.

The company reported third-quarter earnings (excluding 26 cents from non-recurring items) of 5 cents per share against the Zacks Consensus Estimate of a loss of 3 cents. In the year-ago period, the company had incurred a loss of 90 cents per share amid significant decline in ride volumes induced by coronavirus-led woes.

Total revenues of $864.4 million outperformed the Zacks Consensus Estimate of $860.2 million and also surged approximately 73% year over year. The top line benefited from 51.4% jump in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app), which totaled 18.94 million in the reported quarter. This San Francisco-based company’s Revenue per Active Rider increased 14.2% year over year to $45.63.

Lyft, Inc. Price, Consensus and EPS Surprise

Lyft, Inc. price-consensus-eps-surprise-chart | Lyft, Inc. Quote

Lyft’s third-quarter performance improved sequentially as well, reflecting continued recovery in rideshare rides. Total revenues increased 13% from the second quarter of 2021 with 10.5% rise in Active Riders.

Lyft’s adjusted EBITDA in the third quarter was $67.3 million, an improvement of $307 million year over year and $43.5 million sequentially. This marks the company’s second straight quarter of generating adjusted EBITDA profits. Adjusted EBITDA margin for the third quarter was 7.8% against adjusted EBITDA loss margin of 48% in the year-ago period. In the second quarter of 2021, adjusted EBITDA margin was 3.1%.

Total costs and expenses climbed 9.3% year over year to $1.04 billion in the quarter. Contribution improved more than 100% year over year to $513.6 million. Contribution margin increased to 59.4% from 49.8% in the year-ago period. Lyft, carrying a Zacks Rank #2 (Buy), exited the third quarter with unrestricted cash, cash equivalents and short-term investments of $2.4 billion compared with $2.25 billion at the end of 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q4 Outlook

For fourth-quarter 2021, Lyft expects adjusted EBITDA of $70 million-$75 million. Revenues are expected between $930 million and $940 million in the same period. The Zacks Consensus Estimate for the same stands at $953.99 million.

Performance of Other Computer & Technology Stocks

Within the broader Computer and Technology sector, AMETEK, Inc. AME, T-Mobile US, Inc. TMUS and Carrier Global Corporation CARR recently reported earnings numbers.

AMETEK’s third-quarter 2021 adjusted earnings of $1.26 per sharebeat the Zacks Consensus Estimate by 5.9%.Net sales of $1.44 billion surpassed the Zacks Consensus Estimate of $1.41 billion. The stock carries a Zacks Rank #3 (Hold).

T-Mobile, carrying a Zacks Rank #3, reported third-quarter 2021 earnings of 55 cents per share beating the Zacks Consensus Estimate of 54 cents per share. Revenues of $19.6 billion missed the Zacks Consensus Estimate by 2.51%.

Carrier Global, carrying a Zacks Rank #3, reported third-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate by 7.6%. However, net sales of $5.341 billion missed the Zacks Consensus Estimate of $5.343 billion.

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