Lyft, Roku earnings — What to know in markets Wednesday

Heidi Chung
·Reporter

Ride-sharing giant Lyft (LYFT) and streaming company Roku (ROKU) will release quarterly results after the market close.

In its second earnings report as a public company, Lyft is expected to report adjusted loss of $1 per share on $809.43 million of revenue, according to data compiled by Bloomberg.

Daily active riders, average revenue per rider and contribution profit will be in focus. Lyft is expected to report 21.86 million daily active riders during the second quarter, which represents 35% increase year over year. Wall Street analysts anticipate average revenue per rider jumped 19% from last year to $38.81.

Lyft debuted on the public market March 29, after pricing at $72 per share. Since its debut, Lyft stock has struggled to find its footing. Shares have fallen more than 19% since IPO, but Wall Street remains bulled up on the company.

RBC analyst Mark Mahaney currently has an Outperform rating on the stock with a $72 price target. “We continue to believe that LYFT is a strong #2 player in the large and growing U.S. Ridesharing industry, with industry-leading growth rates. And we continue to believe that Lyft has a reasonable path to profitability in the coming years from competitive dynamics improving, long-term pricing power, insurance leverage, and expense leverage from scale benefits.”

Credit Suisse analyst Stephen Ju explained that his long-term thesis remains unchanged. “Our target price remains at $95 and we maintain our Outperform rating on the following factors: 1) large, fragmented, and under-penetrated addressable market of $745 billion, 2) autonomous offers optionality for earlier entry to steeper part of adoption S-curve for ride share, 3) upside potential to our target,” Ju said in a note Tuesday.

In addition, Roku also faces its moment of truth after the bell. The stock has been on fire this year, surging more than 220%.

Investors will be paying close attention to more insight into the company’s updates for advertising, streaming hours and active accounts. Analysts have long maintained that the rise in cord-cutting will continue to benefit Roku. Cord-cutting has only accelerated recently. According to Bloomberg, cable networks lost more than 1.4 million subscribers in the second quarter.

Wall Street is expecting Roku to report an adjusted loss of 21 cents per share on $224.46 million during the second quarter. The options market is currently implying about a 19% move in either direction following the report.

Other notable reports scheduled for Wednesday include CVS (CVS), New York Times (NYT), Teva Pharmaceuticals (TEVA), Wendy’s (WEN) before market open; Booking Holdings (BKNG), e.l.f. Beauty (ELF), Fox (FOXA), IAC/InterActive Corp (IAC), Jack in the Box (JACK), Marathon Oil (MRO), Skyworks (SWKS), Sonos (SONO), TripAdvisor (TRIP), Zillow (ZG) after market close

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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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