LYFT Earnings: Lyft’s Share Price Rises as Company Increases Its Stock Buybacks

Shares of Lyft are up 7% after the ride-hailing and delivery company increased its stock buyback plan to $750 million.

News of the improved share repurchase program was included in the San Francisco-based company’s first-quarter financial results. Lyft reported earnings per share (EPS) of $0.01, which was well below the $0.20 forecast on Wall Street. Revenue in the period totaled $1.45 billion, which fell short of the $1.47 billion consensus estimate of analysts. Sales were up 14% from a year ago.

While Lyft’s profit missed expectations, it was an improvement from a net loss of -$0.08 recorded a year earlier. The company said that its rides rose 16% during the quarter to 218.4 million. Active riders grew 11% to 24.2 million, while gross bookings surged 13% to $4.16 billion.

Lyft’s active riders. Source: Main Street Data

Continued Growth

“With our expansion into new demographics via Lyft Silver and into Europe with our planned FREENOW acquisition, we’re putting all the pieces in place for sustained, market-leading performance,” said CEO David Risher in the company’s earnings statement.

In terms of guidance, Lyft said that for the current second quarter, it anticipates ride growth in the mid-teens from a year ago. Gross bookings are expected to range between $4.41 billion and $4.57 billion. The company reported $280.7 million in free cash flow at the end of Q1, ahead of the $136.3 million estimate of Wall Street.

LYFT stock is flat on the year, having risen 0.78%.

Is LYFT Stock a Buy?

Lyft’s stock has a consensus Hold rating among 29 Wall Street analysts. That rating is based on six Buy, 22 Hold, and one Sell recommendations issued in the last three months. The average LYFT price target of $15.89 implies 22.23% upside from current levels. These ratings are likely to change after the company’s financial results.

Read more analyst ratings on LYFT stock