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Investing.com - Benchmark maintained its Buy rating and $20.00 price target on Lyft (NASDAQ:LYFT) stock Thursday, despite mixed second-quarter results from the ride-hailing company. Currently trading at $14.57, InvestingPro analysis suggests the stock is undervalued, with a "GOOD" overall financial health score.
Lyft reported second-quarter gross bookings and revenue that slightly missed Street expectations, though its third-quarter guidance appeared strong. The company achieved impressive revenue growth of 19.94% over the last twelve months, generating $6.1 billion in revenue and maintaining profitability with $92.19 million in net income. Benchmark noted uncertainty about how much analysts had factored the FREENOW acquisition into consensus estimates.
The company announced a new partnership with United Airlines, fulfilling CEO David Risher’s promise to replace the previously lost Delta loyalty program with another major brand collaboration.
Lyft claimed it achieved record market share in the second quarter, suggesting it gained domestic market share from competitor Uber (NYSE:UBER). Benchmark’s analysis indicates Lyft grew approximately one percentage point faster than Uber in the UCAN region.
Benchmark identified Lyft as one of its "top contrarian ideas" and recommended buying the stock on any weakness following the earnings report.
In other recent news, Lyft’s second-quarter earnings report has drawn varied responses from financial analysts. The company reported gross bookings of $4.5 billion and revenue of $1.6 billion, both below Street expectations, yet showing a year-over-year increase. Lyft’s EBITDA performance was a bright spot, exceeding consensus estimates with a reported $129 million. This led TD Cowen to raise its price target for Lyft to $22, maintaining a Buy rating, while BMO Capital adjusted its target to $16 with a Market Perform rating. Evercore ISI maintained its price target at $15, reiterating an "In Line" rating. Cantor Fitzgerald upheld a Neutral rating with a $14 price target, noting the mixed nature of the results. BofA Securities reiterated a Buy rating, emphasizing Lyft’s partnership with United, aligning with their $12 price target. Lyft’s active riders reached a record 26.1 million, slightly surpassing projections. These developments reflect a complex picture for investors considering Lyft’s stock.
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