Lyft: share price falls after mixed results

(CercleFinance.com) - Lyft released mixed results for Q4 on Tuesday evening, with earnings ahead of analysts' expectations, but sales and total billings in line.


Over the last three months of the year, the chauffeur-driven vehicle (VTC) specialist posted adjusted operating income (Ebitda) of $112.8 million, compared with $66.6 million a year earlier.

Sales rose by 27% to $1.6 billion, while total billings increased by 15% to $4.3 billion, in line with market forecasts.

However, Lyft's first-quarter targets turned out to be much lower than expected, with the San Francisco-based company targeting total billings of between $4.05 and $4.20 billion for the first three months of the year.

Lyft, citing a recent trend towards price deterioration, also expects its adjusted EBITDA to fall to between $90 and $95 million.

For analysts, these disappointing forecasts illustrate just how uncertain and sinuous the company's growth trajectory is.

'We can see that the environment is becoming more difficult with a view to implementing current initiatives and achieving medium-term objectives', worry the teams at Wedbush.

The fact that the group is potentially losing market share despite the reduction in its fares and promotions aimed at bolstering the number of races proves how difficult it is to strike the right balance between growth and profitability for a second-tier player", adds Jefferies.

Investors are particularly worried about competition from Waymo, a specialist in driverless vehicles already established in the company's Californian stronghold.

Following this publication, the stock fell by nearly 10% on Wednesday morning on the New York Stock Exchange, although this has not prevented it from posting a gain of 48% over the last six months.

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