Lyft Inc (NASDAQ:LYFT) shares are trading lower Tuesday after the company reported weak top-line results and issued guidance below analyst estimates.
Lyft said third-quarter revenue jumped 22% year-over-year to $1.05 billion, which missed average analyst estimates of $1.06 billion, according to Benzinga Pro. The company reported quarterly earnings of 10 cents per share, which beat average estimates of 7 cents per share.
Active riders totaled 20.31 million in the third quarter, an increase of 7.2% year-over-year.
“We have taken decisive steps to ensure we can deliver profitable growth, and we are even more confident in our ability to achieve our 2024 financial targets,” said Logan Green, co-founder and CEO of Lyft.
Lyft expects fourth-quarter revenue to be between $1.145 billion and $1.165 billion versus average estimates of $1.17 billion.
Related Link: Lyft Q3 Earnings Highlights: Record Revenue, Guidance Disappoints, Why Shares Are Falling
Analyst Assessment: Several analysts adjusted price targets on the stock following the company’s quarterly results.
- Evercore ISI Group analyst Mark Mahaney downgraded Lyft from Outperform to In-Line and lowered the price target from $41 to $18.
- Credit Suisse analyst Stephen Ju maintained Lyft with an Outperform and lowered the price target from $35 to $33.
- JPMorgan analyst Doug Anmuth maintained Lyft with an Overweight and lowered the price target from $36 to $29.
- DA Davidson analyst Tom White maintained Lyft with a Buy and lowered the price target from $25 to $19.
LYFT Price Action: Lyft has a 52-week high $46.64 and a 52-week low of $10.82.
The stock was down 17.8% at $11.65 Tuesday morning.
Photo: courtesy of Lyft.
