Lyft's Q2 Earnings Impress, But Q4 Expectations Worry Analysts

Shares of Lyft Inc LYFT were trading lower on Wednesday, despite the company reporting an earnings beat for the second quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

RBC Capital Markets On Lyft

Analyst Brad Erickson maintained a Sector Perform rating, while raising the price target from $9 to $12.

Although Lyft reported better-than-expected second-quarter results and raised its guidance for the third quarter, the company decided to “proactively manage expectations down for Q4 where the company's insurance renewal will once again weigh incrementally & heavily on margins,” Erickson said in a note.

“That said, things feel more positive than negative at LYFT: pricing & driver supply are getting where they need to be, rides growth has rebounded nicely and ex-insurance profitability is proving sturdier,” he added.

Check out other analyst stock ratings.

Susquehanna On Lyft

Analyst Shyam Patil reiterated a Neutral rating, while lifting the price target from $9 to $10.

“LYFT’s 2Q was generally fine, and the 3Q guide was better than expected,” Patil wrote in a note. “That said, the company’s early commentary for 4Q expectations came in below estimates,” he added.

“It appears that LYFT’s competitive pricing initiative will continue to weigh on the unit economics, and the upcoming insurance renewals could add some noise on the cost side later in the year,” the analyst further stated.

Needham On Lyft

Analyst Bernie McTernan reaffirmed a Hold rating on the stock.

Lyft’s volume “is largely offsetting pricing headwinds with strong results from commute/early morning and airport rides,” McTernan said.

“Despite higher revenue estimates, our '24E, adj. EBITDA estimates fall by -8% from lower margins, as we expect concerns over the ultimate profit potential of the business to continue to be the major investment debate/over hang on shares,” he added.

LYFT Price Action: Shares of Lyft were down 2.9% to $10.69 at the time of publication Wednesday.

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