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LYFT Pops on Narrower-Than-Expected Q4 Loss & Revenue Beat

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Lyft, Inc. LYFT incurred a loss (excluding 85 cents from non-recurring items) of 58 cents per share in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 71 cents. Total revenues of $569.9 million surpassed the Zacks Consensus Estimate of $556.7 million and also increased 14% sequentially. Following this outperformance in the fourth quarter, shares of the company surged more than 11% in after-market trading on Feb 9.

The recovery in demand for rides, which began in the third quarter, took a back seat in the fourth quarter due to rising coronavirus cases. The decline in demand was partly offset by Lyft’s cost-cutting measures. During the fourth quarter, the company “eliminated $360 million in fixed costs on an annualized basis”. In fact, owing to its cost-containment efforts and expectations of recovery in rides from the second quarter of 2021 onward, Lyft is hopeful of being able to achieve profitability in the third quarter. This is earlier than its previous expectation to turn a profit (on an adjusted EBITDA basis) in the fourth quarter of 2021.

Coming back to Lyft’s fourth-quarter performance, the top line plunged 44% year over year due to fall in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app). Active Riders declined 45.2% year over year to 12.55 million in the quarter under review. However, this San Francisco-based company’s Revenue per Active Rider inched up 2.3% to $45.40 million.

Lyft, Inc. Price, Consensus and EPS Surprise

Lyft, Inc. Price, Consensus and EPS Surprise
Lyft, Inc. Price, Consensus and EPS Surprise

Lyft, Inc. price-consensus-eps-surprise-chart | Lyft, Inc. Quote


Adjusted EBITDA loss for the fourth quarter was $150 million compared with a loss of $130.7 million incurred a year ago. The adjusted EBITDA loss margin came in at 26.3% compared with 12.9% in fourth-quarter 2019. Total costs and expenses fell 26.8% year over year to $1,023.3 million in the quarter.

Contribution deteriorated 43% year over year to $316 million. Contribution margin increased to 55.5% from 54% a year ago. Lyft, carrying a Zacks Rank #4 (Sell), exited the fourth quarter with unrestricted cash, cash equivalents and short-term investments of $2.25 billion compared with $2.85 billion at the end of 2019.

Performance of Other Computer & Technology Stocks

Within the broader Computer and Technology sector, AMETEK, Inc. AME, T-Mobile US, Inc. TMUS and Carrier Global Corporation CARR recently reported earnings numbers.

AMETEK’s fourth-quarter 2020 adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate by 4.8%. Net sales of $1.19 billion missed the Zacks Consensus Estimate of $1.2 billion. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

T-Mobile, carrying a Zacks Rank #4, reported adjusted earnings of $1.03 per share in the fourth quarter, beating the Zacks Consensus Estimate by 52 cents. Quarterly revenues of $20,341 million surpassed the consensus estimate of $19,966 million.

Carrier Global, carrying a Zacks Rank #3, reported fourth-quarter 2020 adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate by 16.2%. Net sales of $4.6 billion beat the consensus mark by 0.3%.

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