Lyft (LYFT) Up 6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Lyft (LYFT). Shares have added about 6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Lyft, Inc. before we dive into how investors and analysts have reacted as of late.Earnings Miss at LYFT in Q3Lyft reported unimpressive third-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Quarterly earnings per share of 26 cents lagged the Zacks Consensus Estimate of 30 cents and declined 10.3% from the year-ago quarter. Revenues of $1.68 billion missed the Zacks Consensus Estimate of $1.70 billion but increased 11% on a year-over-year basis.Gross bookings reported for the third quarter were $4.78 billion, marking a year-over-year increase of 16%. Rides growth surged 15% year over year to 248.8 million, the tenth consecutive quarter of double-digit growth year over year. Active Riders grew 18% year over year to 28.7 million.Lyft’s adjusted EBITDA in the third quarter was $138.9 million, up 29% from the year-ago reported figure. The adjusted EBITDA margin (calculated as the percentage of gross bookings) was 2.9% compared with 2.6% in the prior-year quarter.Lyft exited the third quarter with cash and cash equivalents of $1.31 billion compared with $913.84 million at the end of the prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $1.01 billion compared with $526.53 million at the end of the prior quarter.LYFT’s Q4 2025 GuidanceFor the fourth quarter of 2025, Lyft anticipates year-over-year growth in rides in the mid-to-high teens, driven by industry-leading service levels, strong rider and driver growth and increased engagement.Gross bookings are anticipated to grow almost 17-20% year over year, reaching $5.01-$5.13 billion.Adjusted EBITDA is expected to be between $135 million and $155 million, and an adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is projected to be in the range of 2.7%-3%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.The consensus estimate has shifted 10% due to these changes.VGM ScoresCurrently, Lyft has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lyft has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerLyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, Shopify (SHOP), has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Shopify reported revenues of $2.84 billion in the last reported quarter, representing a year-over-year change of +31.5%. EPS of $0.34 for the same period compares with $0.36 a year ago.For the current quarter, Shopify is expected to post earnings of $0.50 per share, indicating a change of +13.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Shopify. Also, the stock has a VGM Score of F.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks