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Lyft shares jump over 37%, retaining some gains after forecast error

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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. 
Mike Blake | Reuters

Lyft shares traded over 37% higher 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% 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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Lyft share price.

— CNBC’s Ari Levy contributed to this report.

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