Lyft shares saw a 16% surge in premarket trade this Wednesday, maintaining some of the gains despite the company’s acknowledgment of a significant error in its press release detailing its recent results.
The initial release indicated a forecast of a 500 basis point, or 5%, increase in its adjusted earnings margin for 2024.
However, the company later clarified that the accurate figure should have been 50 basis points or 0.5%.
During the firm’s earnings call on Tuesday, Chief Financial Officer Erin Brewer announced the “correction.”
Following the report, Lyft stock initially surged over 60% higher in extended trade, only to moderate significantly upon the correction.
The company’s full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) underwent a notable turnaround, shifting from a $416.5 million loss to a $222.4 million profit.
According to analysts at TD Cowen, Lyft’s fourth-quarter revenue surpassed estimates, propelled by robust gross bookings. Additionally, both EBITDA and EBITDA guidance exceeded expectations, prompting them to raise their target price for the stock.
