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Lyft Is About to Report Q1 Earnings. Here's What to Expect

Lyft Is About to Report Q1 Earnings. Here's What to Expect

Globe and Mail08-05-2025

Ride-hailing platform Lyft Inc. (LYFT) is scheduled to announce its results for the first quarter of 2025 after the market closes on Thursday, May 8. Investor sentiment for Lyft stock has improved ahead of the results, with the stock rising about 19% over the past month. Analysts expect Lyft to report Q1 2025 adjusted earnings per share (EPS) of $0.19, reflecting a nearly 27% year-over-year growth. Revenue is projected to rise about 15% to $1.47 billion.
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Lyft reported a 15% rise in gross bookings in Q4 2024. Further, according to Main Street Data, Q4 active riders increased 10% year over year to 24.7 million. During the Q4 2024 conference call, management noted that while Q1 is traditionally the company's slowest quarter, they expect a healthy marketplace and market-leading service levels to drive year-over-year rides growth, driven by durable demand, a rise in active riders, and increased frequency.
Analysts' Views Ahead of Lyft's Q1 Earnings
Heading into Q1 2025 results, TD Cowen analyst John Blackledge reiterated a Hold rating on Lyft stock and lowered the price target to $12 from $14. The 5-star analyst said that he expects Lyft to report solid Q1 gross bookings but trimmed his Q2 estimates due to macro challenges.
Blackledge expects Lyft to report a 14.8% rise in its Q1 revenue to $1.47 billion, reflecting a deceleration from 26.6% in Q4 2024 and 27.7% in Q1 2024. He expects the first quarter to see seasonally slow contribution from bikes and scooters, as witnessed in Q4 2024. The analyst expects Q1 2025 gross bookings to rise 12.7% to $4.16 billion, driven by continued robust rider demand, coming slightly above the midpoint of the company's guidance. However, Blackledge noted that the Q1 2025 gross bookings estimate reflects a 2.7% sequential decline, mainly due to seasonality.
Meanwhile, reacting to Lyft's strategic acquisition of FreeNow, a European ride-hailing platform, from BMW Group / Mercedes-Benz Mobility for about $197 million, Cantor Fitzgerald analyst Deepak Mathivanan said that he views the deal and the company's move into Europe positively. That said, the 5-star analyst thinks that Lyft is likely to face strong competition from incumbents in the ride-hailing market in this region. Mathivanan has a Hold rating on LYFT stock with a price target of $14.
Options Traders Anticipate a Major Move on Lyft's Q1 Earnings
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 14.8% move in either direction in Lyft stock in reaction to Q1 results.
Is LYFT Stock a Buy, Sell, or Hold?
Given macro challenges, concerns about autonomous vehicles, and competitive pressures, Wall Street is sidelined on Lyft stock, with a Hold consensus rating based on six Buys, 22 Holds, and one Sell recommendation. The average LYFT stock price target of $15.89 implies 23.3% upside potential. LYFT stock is flat on a year-to-date basis.
See more LYFT analyst ratings
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