Lyft beats on Q2 earnings, stock rises
Yahoo Finance anchors discuss second-quarter earnings for Lyft.
BRIAN SOZZI: We're a few minutes away from the opening bell on Wall Street on this jobs report Friday. Lots of things for traders to consider today. We had jobs up 528,000 in the month of July. But of course, Julie, we're still smack in the middle of earnings season.
Let's start with shares of Lyft here. We're seeing it up about 6% here in the premarket. The company beat on earnings, beat on operating profits pretty aggressively. And then, oh, yeah, hopped on the earnings call last night and teased potential $1 billion in operating profits by 2024. Some of the estimates I saw out there in the Street, modeling for about $700 million. So big ambitions for the team over at Lyft.
JULIE HYMAN: It's so interesting to me the trend that we are seeing-- not just at Lyft, not just at Uber, but kind of across the board. Is that even as prices are higher, people are still spending, right?
And so this-- I think that's really evidenced by this quarter from Lyft as well, because we saw 16% increase in active riders to 19.9 million. It's the highest since the start of the pandemic. And this is even as we have seen higher prices for these types of rides. People are out there. They're traveling, whether they're traveling via air, or via car, or via someone else's car. And the revenue per active rider $49.89, the second highest on record here. So it's just partly a factor of people getting back out there.
BRIAN SOZZI: This is no recession morning here on "Yahoo Finance Live." Strong jobs report. And to your point, yes--
JULIE HYMAN: Another thing where I'm like, I don't know who's--
BRIAN SOZZI: This is deep. We don't even know--
JULIE HYMAN: --sitting next to me today.
BRIAN SOZZI: --where these things are coming from, right? But yes, I know! But you have to call it like you see it.
JULIE HYMAN: Yeah.
BRIAN SOZZI: And Lyft has pushed through higher prices. Uber's pushed through higher prices. Good quarter for Uber. A couple of days ago, Lyft out here doing pretty well. Outlook, a little trimmed. A little below, I think, what some folks were looking for.
But by and large, to your point, you're seeing consumers embrace or being able to handle some of these price increases. Why? Because it's probably a higher income person taking rideshares. And as we just heard from Joe [? Burswellis, ?] the high income consumer, by and large, it's holding up pretty well. They're holding up pretty well.
JULIE HYMAN: There are also more drivers that both of these companies were adding. I believe Uber added, on a percentage basis, added more drivers. But 25% was the increase for Lyft, active drivers. New signups up almost 35%. Because this is, obviously, also a very important part of the story.
It's not just getting people who want to ride in the car. It's getting enough people to drive the cars. And that's been a challenge for these companies.
BRIAN SOZZI: Am I too positive today? I know, it's weird, right?
JULIE HYMAN: I just--
BRIAN SOZZI: I'll clarify, you know, I'll go back to AMC really quickly. I know we're coming up against the opening bell. We're still watching them she shares getting hammered. But look, I mean, the fundamentals of the movie business, they're doing OK. They're all right. I'm not totally on board with Adam Aron is doing, but at least the fundamentals of going to the theater, that's getting better. I've seen a turn in the business.
JULIE HYMAN: And I guess he's attempting to make that sort of slow and steady business--
BRIAN SOZZI: I'm staying skeptical but, you know, I understand.
JULIE HYMAN: --more exciting? I don't know.
BRIAN SOZZI: Things are starting to turn. You see AMC shares under pressure in the market, of course.
JULIE HYMAN: They're not turning.
BRIAN SOZZI: They're not turning but the movie business is looking a little bit better.