It has been about a month since the last earnings report for Lyft (LYFT - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? 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 catalysts.
Lyft Beats on Revenues in Q2
Lyft incurred a loss (excluding 55 cents from non-recurring items) of 86 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $1.58.
Total revenues of $339.3 million also beat the Zacks Consensus Estimate of $328 million. However, the top line declined approximately 61% year over year due to a fall in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app) and Revenue per Active Rider. Results reflect a significant downturn in the company’s core ridesharing business, thanks to coronavirus keeping people homebound.
Active Riders declined 60% year over year to 8.69 million in the quarter under review. This San Francisco-based company’s Revenue per Active Rider dipped 2% to $39.06 million.
Adjusted-EBITDA loss for the second quarter was $280.3 million compared with $204.1 million loss incurred a year ago. The adjusted-EBITDA loss margin came in 82.6% compared with 23.5% in second-quarter 2019. Total costs and expenses contracted 46.3% year over year to $826.84 million in the quarter.
Contribution deteriorated 70.6% year over year to $117.3 million. Contribution margin fell to 34.6% from 46% a year ago. Lyft exited the second quarter with unrestricted cash (cash and cash equivalents + short-term investments) of $2.77 billion compared with $2.85 billion at the end of 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted -11.01% due to these changes.
Currently, Lyft has a subpar Growth Score of D, though it is lagging a bit 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 bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Lyft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.