Lyft Prepares For Q3 Earnings With Prop 22 Win, Boost From Canadian Market
Here’s a look at what to expect when Lyft releases earnings after the close of the market:
What To Expect: Victory With California’s Prop 22, Boost From Canada
Shares of Lyft were up approximately 26.5 percent as of about 3 p.m. Eastern Time on Monday (Nov. 9).
Lyft’s stock has been rising since as of the election on Tuesday (Nov. 3) when California voters approved the statewide ballot initiative Proposition 22, which lets app-based firms like ridesharing companies and other gig economy players categorize workers as contractors instead of employees.
The company’s stock was trading at approximately $37.75 per share as of around 3 P.M. Eastern Time on Monday (Nov. 9), up from $25.56 at market open on Tuesday (Nov. 3).
The go-ahead means that Lyft, Uber and DoorDash can breathe a bit easier and not have to change their business models significantly, as they said they would need to do if Prop 22 had been struck down.
It also means that AB5, which was ratified in 2019, is essentially dead. That regulation would have required that ridesharing drivers working a minimum of 15 hours weekly be categorized as employees.
At the time, it was reported that operations in Canada appeared to be recovering quicker than those in the United States.
What Happened In Q2
Lyft said on Aug. 12 that its active ridership plummeted 60 percent year over year in Q2 because of the pandemic, but noted that indications of recovery were coming to the surface.
By the numbers, Lyft lost 86 cents per share — better than the 99 cents of red ink that analysts had predicted. Revenue arrived at $339 million, which was slightly above analysts’ forecasts of $337 million.
Latest News: Lyft’s Strength In Canada And New Partnerships
The new function has begun to launch and will ultimately be available to all Lyft riders.
Beyond paying for rideshares, users can tap Venmo to harness Lyft’s bikes and scooters where they are available.
Earlier in October, Lyft announced it was collaborating with Epic, which provides electronic health records (EHR), to provide offerings that will let healthcare workers set up a Lyft ride for a patient straight from his or her record.
An essential selling point for Lyft was that the service would bring about fewer missed appointments.
Analyst Estimates: The Q3 Forecast
All in, analysts expect Lyft to post a Q3 loss of 93 cents per share compared to an actual 41 cents per share loss in Q3 2019.