Lyft Q3 Earnings Preview: Will Earnings Drive the Stock Higher?
Lyft Q3 Earnings Preview: Will Earnings Drive the Stock Higher?
Active-rider growth is in focus for investors. Can Lyft beat expectations? What can traders and investors expect?
- Lyft Q3 earnings are due Wednesday, Nov. 8.
- EPS are expected to be $0.15, adjusted, on $1.14 billion in revenue.
- Lyft's stock price gains more than 8% on Thursday.
Lyft Inc. (LYFT) is scheduled to report third quarter fiscal results on Wednesday, Nov. 8, after market close, according to press release. A conference call is scheduled to follow at 4 p.m. Central Time.
Investors expect to see earnings per share (EPS) of $0.15 on an adjusted basis, while the GAAP figure is expected to cross the wires at -$0.19 on $1.14 billion in revenue. Investors have increased their view on adjusted EPS, rising nearly 16% over the past four weeks. Hitting the mark could be key for investors, who appear less forgiving, given the current market environment.
Growth in riders will be important for Lyft investors
Active-rider growth is in focus this quarter after the company lowered prices to compete with Uber, which has taken market share away from Lyft in recent quarters. Revenue per rider is also in the spotlight although the number may not impress, given the price cuts.
The company is also expected to announce further cost-cutting measures as the threat of higher interest rates puts pressure on its business segment. Still, consumer health has remained rather resilient in the U.S. economy, and it could offer a bright spot in the view of executives’ guidance.
The company may accomplish cost-cutting measures through further divestment in its micro-mobility business, which includes bike and electronic scooter rentals in major cities. According to analysts, Lyft currently holds six buy ratings, 35 hold ratings and two sell ratings, with an average target price of $11.75, according to Bloomberg data.
On Thursday, the New York attorney general announced a settlement granting a total of $328 million in back pay for rideshare drivers working with Lyft and its rival Uber Technologies (UBER). The settlement also establishes a minimum floor for driver pay and guaranteed sick leave. Still, the share price rose significantly, considering the announcement.
Trading Lyft earnings
Lyft is trading with an implied volatility rank (IVR) of 43.1 on Thursday. The Nov. 10 expiry shows an expected move of +/- 1.33 points against the current stock price of $9.91 per share.
The stock price has traded in a shallow downward trend since July, making a series of lower highs and lower lows. Thursday’s bounce comes from the lowest trading level since May, suggesting a bottom may have been put in. Still, the stock remains below its 26-day exponential moving average (EMA).
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2025 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.