An empty Lyft pick-up area is shown as rideshare drivers hold a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers “basic employee rights”, in Los Angeles, California, U.S., August 20, 2020.Â
Mike Blake | Reuters
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.
Lyft share price.
— CNBC’s Ari Levy contributed to this report
