Gary Black Bullish On Lyft, Sees Investment Opportunity As Uber Rival Surprises With Q1 Profit And AV Adoption Plans

“$LYFT +8% AH after delivering higher than expected EBITDA, FCF, and turning a surprise earnings profit (+$.01 vs -$.02 exp loss),” Black said. The company beat Wall Street expectations on EPS, but missed out on quarterly revenue estimates as Lyft announced $1.45 billion in revenue.

“LYFT trades at just 14.0x FY’25 Adj EPS and 10.4x FY’26 est eps while growing bookings, revs, and trips at 12% and EBITDA growth of 25%,” Black said in the post.

“Both $UBER and $LYFT seem worthy of increased investment given the high probability of cost per mile reductions as autonomous vehicles become more commonplace,” he shared.

Why It Matters: The news comes in as Lyft announced surprise results during its earnings call as the company turned in a 1-cent EPS, which beat analyst expectations.

The company’s board also authorized an increase to its stock repurchase program to $750 million, of which Lyft intends to utilize $500 million within the next 12 months.

Lyft also recently acquired European ride-sharing service Freenow in a cash deal that’s worth over $197 million. The deal would allow Lyft to operate in over 9 European countries.

Elsewhere, rival Uber Technologies Inc. UBER is increasing its presence in the autonomous driving sector as the company signed deals with May Mobility as well as Volkswagen Group VWAGY to operate their vehicles on its platform.

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