Shares of ride-hailing company Lyft (NASDAQ:LYFT) jumped nearly 60% in Tuesday’s after-hours trading on strong Q4 results. However, the gains were retracted following a statement by CFO Erin Brewer in the earnings call, acknowledging an error in the earnings press release. Brewer clarified that the company had inaccurately reported its forecast for adjusted EBITDA margin growth in the press release.
Brewer stated that the actual increase in adjusted EBITDA margin for 2024 would be 50 basis points (or 0.5%), in contrast to the initially indicated 500 basis points (or 5%) growth. Despite this adjustment, LYFT stock was still up about 15.9%.
LYFT – A Brief Look at Q4 Performance
Lyft delivered revenue of $1.22 billion, up 4% year-over-year. Moreover, its top line came in line with the Street’s forecast. Strong rideshare demand and higher gross bookings supported its revenue.
Meanwhile, the company delivered adjusted EPS of $0.18 compared to a loss of $0.74 per share in the prior-year quarter. Further, the company’s bottom line exceeded the analysts’ consensus estimate of $0.08 per share.
For the first quarter of 2024, Lyft expects gross bookings of approximately $3.5 billion to $3.6 billion, which compares favorably to analysts’ average estimate of $3.46 billion.
Is Lyft a Buy or Sell?
LYFT stock sports a Hold consensus rating based on two Buy, 13 Hold, and two Sell recommendations. It has gained about 12.7% in one year. Analysts’ average price target of $14.16 implies 16.74% upside potential from current levels.
![](https://blog.tipranks.com/wp-content/uploads/2024/02/LYFT.png)