Lyft shares up 16% in premarket trade, retaining some gains after forecast error

Business

A Lyft sign is seen in the pick-up area at JFK Airport in New York City on April 28, 2023.

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Lyft shares were 16% higher in premarket trade on Wednesday, retaining some gains after the company said it made a major error in a press release reporting its latest results, but still outperformed analyst estimates.

A release initially said the company was forecasting a 500 basis point, or 5%, expansion of its adjusted earnings margin for 2024. The correct figure, the company clarified later, should have been 50 basis points, or 0.5%.

Chief Financial Officer Erin Brewer announced the “correction” during the firm’s earnings call Tuesday.

Lyft stock initially shot up more than 60% higher in extended trade after the report, before cooling significantly on the correction.

The company’s full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) swung from a $416.5 million loss to a $222.4 profit.

Analysts at TD Cowen said Lyft’s fourth-quarter revenue beat estimates on the strength of its gross bookings, while EDITDA and EBITDA guidance were also ahead, as they raised their target price on the stock.

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— CNBC’s Ari Levy contributed to this report

Read original article here.

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