Sares of Lyft (LYFT) are up 24% after the ride hailing and delivery company reported better-than-expected financial results for the final quarter of 2023.
Investors are cheering news that Lyft swung from a $416.5 million U.S. loss a year earlier to a profit of $222.4 million U.S. in the fourth quarter of last year.
Lyft’s stock initially rose more than 60% on news of the earnings release due to an accounting error by the company.
Lyft had said that it was forecasting a 500-basis point, or 5%, expansion of its earnings for all of 2024. The correct figure, the company quickly clarified, was 50 basis points, or 0.50%.
Even though the stock gains moderated, the company’s share price is still up nearly 25% on news of a very strong quarter from Lyft.
For Q4 2023, Lyft reported earnings per share (EPS) of $0.16 U.S., which was double the profit of $0.08 U.S. expected on Wall Street.
Revenue in the period totaled $1.22 billion U.S., matching analysts’ expectations.
Prior to today (Feb. 14), Lyft’s stock had risen 13% over the past year and was trading at $12.13 U.S. per share.
