Lyft projected adjusted earnings as much as 11 per cent higher than analysts' estimates, and reported bookings ahead of expectations. And then there was the outlook for profitability: Margins, the ride-hailing provider said in an initial press release Tuesday, were set to expand this year by an eye-watering 500 basis point Shares surged, jumping 67 per cent in after-hours trading.
But the projection was off. Way off.
Less than an hour after issuing the statement, Lyft Chief Financial Officer Erin Brewer joined a call with analysts and said the company is actually expecting margins to expand by 50 basis points acknowledging, when asked by an analyst, that the press release was incorrect. A company spokesperson later attributed the mistake to a "clerical error," and the company eventually corrected its statement and regulatory filings. Shares almost immediately gave up gains. By the time premarket trading opened on Wednesday morning, its rally had pared to about 20 per cent.
It's a "black-eye moment" for Lyft, said Dan Ives, an analyst at Wedbush Securities, "a debacle of epic proportions." He said by email that he'd "never seen an error like this in my almost 25 years on the Street."
Diese Geschichte stammt aus der February 15, 2024-Ausgabe von Business Standard.
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Diese Geschichte stammt aus der February 15, 2024-Ausgabe von Business Standard.
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