Lyft Forecasts Slower Quarter, Shares Subside

(MENAFN- Baystreet) Lyft (NASDAQ:LYFT) gave a soft forecast for the current quarter ending September on Wednesday, taking the sheen off strong second-quarter results and sending its shares down after the bell.

Lyft and its larger rival Uber are battling to service a boom in ride-share demand from summertime tourism and as people step out more frequently for work and leisure activities.

The ride-sharing company forecast gross bookings - the total value of transactions on the Lyft app excluding tips - between $4.0 billion and $4.1 billion, compared to analysts' consensus estimates of $4.13 billion from LSEG.

Adjusted core earnings guidance of $90 million to $95 million also came in below the street target of $104.3 million.

Uber reported a strong quarter on Tuesday, but its gross bookings guidance also came in just shy of the street target for July to September, regarded as the peak tourist period.

Uber has a global footprint and diversified business, which includes food delivery and parcel services, while Lyft operates ride-hailing services in the U.S. and Canada.

For the second quarter, Lyft reported better-than-expected revenue and posted a net profit for the first time, driven in part by cost cuts last year.

Lyft dragged its tail approaching noon EDT Wednesday, losing $1.33, or 12.1%, to $9.64.

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