Investing

Earnings Previews: Activision Blizzard, Lyft, T-Mobile

Lyft

Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) has seen its share price rise by 101% over the past 12 months but fall by about 6.6% for the year to date. For the quarter just ended, the stock dropped more than 15%. Lyft made a half-hearted play for the meal and food delivery business that rival Uber adopted during the worst of the pandemic lockdowns. That’s left Lyft with fewer drivers who complain that the company’s pay lags not only Uber’s but other delivery services.

Still, of the 41 analysts covering the stock, 28 have awarded Buy or Strong Buy ratings and another 11 have Hold ratings on the shares. At a price of around $45.60, the upside potential based on a median price target of $72 is almost 58%. At the high target of $88, the upside potential is 93%.

Third-quarter revenue is forecast at $860.76 million, up 12.5% sequentially and up 72% year over year. Lyft is expected to post an adjusted loss per share of $0.03 for the quarter, down 40% sequential but up from a loss per share of $0.89 in the year-ago quarter. For the full year, The loss per share is forecast at $0.38, much better than last year’s loss of $2.66, on sales of $3.21 billion, up almost 36%.

Lyft is not expected to report a profit in 2021, 2022 or 2023. On the basis of its enterprise value-to-sales, the stock currently trades at 4.4 times expected 2021 sales, 3.2 times estimated 2022 sales and 2.6 times estimated 2023 sales. The stock’s 52-week range is $22.90 to $68.28. Lyft does not pay a dividend.

T-Mobile

Wireless carrier T-Mobile US Inc. (NASDAQ: TMUS) has added about 5% to its share price over the past 12 months, but the third quarter was no help. The shares fell by 12% during those months. Neither Verizon nor AT&T have received a share price boost in the third quarter, but their declines were smaller: about 5.5% for AT&T and about 3% for Verizon. Share prices dropped again in October. T-Mobile suffered a massive data breach in August when an attacker stole files containing account information on about 50 million customers.

Analysts remain bullish on the stock, with 27 of 31 rating the shares at Buy or Strong Buy and another three giving the stock a Hold rating. At a price of around $115.80, the implied gain based on a median price target of $165 is about 42.5%. At the high target of $250, the implied gain is about 116%.

Third-quarter revenue is forecast at $20.21 billion, up 1.3% sequentially and about 4.9% year over year. Adjusted EPS are pegged at $0.46, down 51% sequentially and 61% year over year. For the full year, analysts have forecast EPS of $2.35, down 48%, on sales of $80.51, up 17.7%.

T-Mobile stock trades at 49.3 times expected 2021 EPS, 35.9 times estimated 2022 earnings and 21.2 times estimated 2023 earnings. The stock’s 52-week range is $108.75 to $150.20. The company does not pay a dividend.

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