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The Q2 earnings season has been primarily positive so far, with many companies exceeding expectations and helping to lift sentiment.
For the 335 S&P 500 companies that have reported Q2 results as of Wednesday, August 2nd, total earnings are down -9.8% from the same period last year on +0.3% higher revenues, with 80.6% beating EPS estimates and 66.3% beating revenue estimates.
Next week, on August 8th, we'll hear from Lyft (LYFT - Free Report) after the market's close. But what can investors expect? We can use results from a peer, Uber Technologies (UBER - Free Report) , as a small guide. Let’s take a closer look.
Uber Q2
Uber posted quarterly results on August 1st, exceeding the Zacks Consensus EPS Estimate handily but falling short of revenue expectations by a slight 1%. Revenue saw year-over-year growth of nearly 15%, whereas earnings were up notably from the -$1.33 per share loss in the year-ago quarter.
Image Source: Zacks Investment Research
In addition, Gross Bookings improved 19% year-over-year to $31.4 billion, and overall trips witnessed significant growth, climbing 24% to 24 million daily trips on average. Still, the real highlight was the company’s improved profitability; operating cash flow totaled $606 million, with free cash flow coming in at a record $549 million.
Nelson Chai, CFO, said, "We delivered record profitability and free cash flow in Q1, and we are poised to expand profitability again in Q2.”
Despite the results, UBER shares faced selling pressure post-earnings, likely a reflection of profit-taking among market participants. Up nearly 90% on a year-to-date basis. UBER shares have widely outperformed the general market.
Image Source: Zacks Investment Research
Now, let’s take a look at the expectations for Lyft.
Lyft
Analysts have shown optimism surrounding the quarter-to-be-reported, with the -$0.01 per share loss estimate up a penny over the last several months. The company is expected to see a nearly 110% decline in earnings from the year-ago period.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate presently sits at $1.0 billion, 2.7% higher year-over-year. It’s worth noting that the quarterly estimate has been revised modestly higher since mid-May. Similar to Uber, Lyft’s revenue has grown nicely over the years.
Image Source: Zacks Investment Research
Lyft posted results well above expectations in its latest release, exceeding earnings expectations by nearly 190% and delivering a 2.4% revenue surprise. It’s worth noting that the market has reacted poorly to the company’s recent results, facing selling pressure in back-to-back releases.
Image Source: Zacks Investment Research
Bottom Line
Earnings season continues to chug along, with an extensive list of companies unveiling results daily.
A peer, Uber Technologies (UBER - Free Report) , posted solid results on the back of improved profitability. Still, the market didn’t react well to the print, likely reflecting profit-taking after a massive 2023 run.
For Lyft’s upcoming release, analysts have modestly increased their expectations, with earnings forecasted to witness a decline but revenue expected to improve.
Heading into the release, Lyft is a current Zacks Rank #2 (Buy), with an Overall VGM Score of ‘D.’
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Lyft Q2 Preview: Can Results Drive Shares Higher?
The Q2 earnings season has been primarily positive so far, with many companies exceeding expectations and helping to lift sentiment.
For the 335 S&P 500 companies that have reported Q2 results as of Wednesday, August 2nd, total earnings are down -9.8% from the same period last year on +0.3% higher revenues, with 80.6% beating EPS estimates and 66.3% beating revenue estimates.
For an in-depth analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report. –> Earnings Estimates Reflect Stabilization
Next week, on August 8th, we'll hear from Lyft (LYFT - Free Report) after the market's close. But what can investors expect? We can use results from a peer, Uber Technologies (UBER - Free Report) , as a small guide. Let’s take a closer look.
Uber Q2
Uber posted quarterly results on August 1st, exceeding the Zacks Consensus EPS Estimate handily but falling short of revenue expectations by a slight 1%. Revenue saw year-over-year growth of nearly 15%, whereas earnings were up notably from the -$1.33 per share loss in the year-ago quarter.
Image Source: Zacks Investment Research
In addition, Gross Bookings improved 19% year-over-year to $31.4 billion, and overall trips witnessed significant growth, climbing 24% to 24 million daily trips on average. Still, the real highlight was the company’s improved profitability; operating cash flow totaled $606 million, with free cash flow coming in at a record $549 million.
Nelson Chai, CFO, said, "We delivered record profitability and free cash flow in Q1, and we are poised to expand profitability again in Q2.”
Despite the results, UBER shares faced selling pressure post-earnings, likely a reflection of profit-taking among market participants. Up nearly 90% on a year-to-date basis. UBER shares have widely outperformed the general market.
Image Source: Zacks Investment Research
Now, let’s take a look at the expectations for Lyft.
Lyft
Analysts have shown optimism surrounding the quarter-to-be-reported, with the -$0.01 per share loss estimate up a penny over the last several months. The company is expected to see a nearly 110% decline in earnings from the year-ago period.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate presently sits at $1.0 billion, 2.7% higher year-over-year. It’s worth noting that the quarterly estimate has been revised modestly higher since mid-May. Similar to Uber, Lyft’s revenue has grown nicely over the years.
Image Source: Zacks Investment Research
Lyft posted results well above expectations in its latest release, exceeding earnings expectations by nearly 190% and delivering a 2.4% revenue surprise. It’s worth noting that the market has reacted poorly to the company’s recent results, facing selling pressure in back-to-back releases.
Image Source: Zacks Investment Research
Bottom Line
Earnings season continues to chug along, with an extensive list of companies unveiling results daily.
And soon, we’ll hear from Lyft (LYFT - Free Report) .
A peer, Uber Technologies (UBER - Free Report) , posted solid results on the back of improved profitability. Still, the market didn’t react well to the print, likely reflecting profit-taking after a massive 2023 run.
For Lyft’s upcoming release, analysts have modestly increased their expectations, with earnings forecasted to witness a decline but revenue expected to improve.
Heading into the release, Lyft is a current Zacks Rank #2 (Buy), with an Overall VGM Score of ‘D.’