Lyft (NASDAQ: LYFT) announced its second round of job cuts yesterday with an aim to reduce operating expenses and adjust cash flows. The ride-hailing company will let go of 13% of its workforce, or 683 employees. Earlier in July, the company cut 60 jobs at its rental division.
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As a result, the company will incur $27 million – $32 million in restructuring and other charges during Q4 related to the layoffs.
In the SEC filing, the company stated, “The announced reduction in force is a proactive step to ensure the Company is set up to accelerate execution and deliver strong business results in Q4 of 2022 and in 2023.”
The company reiterated its Q3 guidance and that its long-term 2024 targets of $1 billion in adjusted EBITDA and over $700 million in free cash flow remain unchanged.
Q3 Earnings Preview: What to Expect
The company is slated to release its third-quarter Fiscal 2022 results on November 7 after the market closes.
Wall Street expects LYFT to post adjusted earnings of $0.07 per share. Meanwhile, revenue expectations are pegged at $1.06 billion, representing year-over-year growth of 22.8%.
Notably, LYFT has a strong track record of reporting earnings beats. It has beaten estimates in all the preceding eight reported quarters.
Is LYFT Stock a Buy, According to Analysts?
Turning to Wall Street, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on 11 Buys, 11 Holds, and one Sell. Lyft’s average price forecast of $28.47 implies 111.05% upside potential.
