Although still losing money, Lyft exceeded analyst expectations for Q1 earnings
Lyft had a rough time in getting its money right, but now it is even harder as the pandemic measures are enforced for more than one and a half months. Yesterday, the ride-hailing company released its financial report for the first quarter of 2020.
Losses were still high, but compared to the same period last year, their trend is positive. The decline in revenue was $398.1 million in contrast with the previous year's $1.14 billion. The company lost “only” $1.31 per share from last year's $48.53 per share. This year, the expectations were of a loss of 62 cents per share on sales of $882 million. The revenue went up by 23% to $955.7 from $776 million.
The figures came as a surprise after the company leadoff accounted for 17% of the workforce. Besides the 982 layoffs, another 288 employees are in furlough.
Wednesday the stock price went up almost 17% in after-hours trading. It continued to rally Thursday when it added 14% in premarket.
Overall, the ride-hailing industry was walloped by the pandemic, with an 85% drop in demand in most cities, according to a report released by Barclays on April 20. Analysts expect a swift rebound as the containment measures ease, and people will be able to go out.
Lyft’s stock hurtled 51% in the past year, while USA500 lost 1.1%.
See the difference when trading with CAPEX.com by accessing elite features:
- Stellar custom service
- Powerful WebTrader platform and mobile app
- High-end integrated trading tools
- Full license and regulation from top regulators
Sources: cnbc.com, marketwatch.com
The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.
Uživatelé / čtenáři by se neměli spoléhat výhradně na informace, které jsou zde prezentovány, a měli by také provádět vlastní výzkum / analýzu a také četli skutečný podkladový výzkum. Obsah je obecný a nezohledňuje individuální osobní situaci, investiční zkušenosti nebo současnou finanční situaci.
Společnost Key Way Investments Ltd proto nebere žádnou odpovědnost za ztráty obchodování z důvodu použití a obsahu zde uvedených informací. Výkonnost v minulosti není spolehlivým ukazatelem budoucích výsledků.