Notable Calls: TMX Group, Canopy Growth and Lyft
Lyft Inc. forecast an adjusted loss for the first quarter of 2021 that beat analyst estimates. The company’s stock was up about 3.7 per cent in after-hours trading on Tuesday.
The company, which has been badly battered by the pandemic’s impact on travel, said it expected to lose US$135 million for the quarter on an adjusted basis. Analysts had been expecting a loss of US$146 million, according to Bloomberg data.
The company also said that the week of Feb. 28 was its best in terms of number of rides since the start of the pandemic. In February, average daily rides increased 4 per cent from the previous month, signaling that a decline in coronavirus cases may be giving the company a reprieve. A Lyft spokesman said that the company expected the increase in rides to continue in March.
“With new vaccines on the horizon, we’re seeing the worst of the pandemic in the rearview mirror,” said Lyft spokesman Eric Smith.
Lyft president John Zimmer told investors just three weeks ago that uncertainty around vaccine distribution made him unwilling to provide a forecast for the first quarter. But that unease has been calmed somewhat with the recent approval of Johnson & Johnson's one-shot vaccine and President Joe Biden's statement Tuesday there will be sufficient vaccine doses for every U.S. adult by the end of May.