Lyft (LYFT) reported adjusted earnings of 18 cents per share on $1.22 billion in sales, surpassing analyst expectations. The company also forecasted positive free cash flow for the first time this year.
The ride-hailing company's stock initially surged over 50% following the report but retreated after an error was found in its press release regarding adjusted margins for 2024. Lyft clarified that the adjusted margins were expected to expand by 50 basis points, not 500 basis points as previously stated.
Despite the correction, Lyft's overall results were strong. The company narrowed its net loss for the fourth quarter to $26.3 million compared to $588 million loss in the same period last year. Lyft also reported its highest-ever ridership in 2023, with over 40 million riders.
For the current quarter, Lyft forecasted gross bookings growth of $3.55 billion, beating analyst expectations. The company expressed confidence in achieving positive free cash flow for the full year, citing operational excellence and momentum from the previous year.
Lyft stock has an IBD Composite Rating of 72 out of 99 and an IBD Relative Strength Rating of 85 out of 99. The stock has an Accumulation/Distribution Rating of B-, indicating more institutional buying than selling.
Before the earnings release, Lyft stock closed down 2% at $12.13. The stock was just below a $12.79 buy point from a consolidation pattern, according to IBD MarketSmith.
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