LYFT Inc (LYFT)

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Lyft Stock Leaps Forward, Carrying Uber, as Ride-Sharing Makes Comeback
By: TheStreet | November 3, 2021

• Lyft stock leaps after reporting third-quarter earnings that handily beat analysts’ forecasts, raising expectations that rival Uber also will report strong results.

Lyft (LYFT) stock leapt forward on Wednesday, gaining more than 15% in premarket trading, after the ride-sharing company reported third-quarter earnings that handily beat analysts’ forecasts and said it is seeing a post-pandemic return of passengers and drivers to the roads.

Shares of rival Uber (UBER) also gained as investors recalibrated their expectations for its third-quarter earnings, due out on Thursday.

Lyft stock was up 15.95% at $52.55 in premarket trading after the company reported third-quarter revenue of $864 million, slightly ahead of estimates. It posted per-share earnings of 5 cents vs. analyst estimates of a 3-cent-a-share loss.

"We had a great quarter,” Lyft CEO Logan Green said in a statement accompanying the earnings announcement. “Driver supply materially improved in Q3, up nearly 45% versus last year, reflecting strong new driver trends."

The company said it anticipates improved service and pricing in the fourth quarter. "Given our success onboarding new drivers and expected supply tailwinds, we anticipate our service levels will naturally improve in Q4 and lead to lower prices," CFO Brian Roberts said in the statement.

Ride-sharing rival Uber also saw its shares rise following the earnings release and into premarket trading on Wednesday. At last check, Uber shares were up 6.09% at $45.50 in premarket trading.

Uber is expected to post its latest financial results on Thursday. Analysts surveyed by FactSet expect the company to report a loss of 33 cents a share on sales of $4.42 billion.

Ride-sharing companies suffered badly during the peak of the COVID-19 shutdowns, as travel fell sharply, and drivers chose to stay home to avoid exposure. Uber saw some benefit from its food delivery operations that cushioned part of the blow.

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