Lyft increases the actions repurchase program, aims at smaller cities in growth impulse

For Akash Srivam

(Reuters) -Lyft increased its shares repurchase up to $ 750 million and passed on Thursday the benefits of the first quarter, which resulted in a constant demand for its hunting services, sending its shares by almost 8% in extensive negotiation.

The company, which is expanding beyond the big cities of the United States to smaller markets, said it intends to use $ 500 million for authorization over the next 12 months. He disclosed his first Participation Returning Program in February, but did not specify a line of time.

Last week, investor engine activist Capital urged Lyft to make an accelerated $ 750 million repurchase and said that the company would consider strategic alternatives, including a sale.

“The repurchase will help reduce the supply of shares and to make action results seem more attractive,” said Andrew Rocco, a strategist of Zacks Research’s Zacks actions.

Lyft’s first quarter revenue increased by $ 13.5% to $ 1.45 billion, while analysts estimated $ 1.47 billion, according to LSEG data collected.

Its adjusted action benefit was 24 cents, exceeding 19 cents.

The largest rival, Uber, with a global food and food delivery business, offered an excellent forecast for the second quarter on Wednesday, but attributed its lower quarter revenue than expected to demand in US travel.

Uber and Lyft have been sharpening their focus on smaller and more car -dependent cities with limited public traffic, marking a new phase of intense competition.

While Uber emphasized the expansion efforts on Wednesday, Lyft highlighted 37% of ascents on the walks in Indianapolis during the quarter, highlighting an aggressive push in the less preserved markets in search of growth.

Lyft also piloting taxis in St. Louis I said last month would acquire the Freenow mobility firm for $ 200 million to enter European markets.

“Base in our fundamental base in the basic areas, we are now directing our attention to regions with high dependence on the car and limited public transport, presented significant growth opportunities,” said the company.

Lyft provides for gross reserves of between $ 4.41 billion and $ 4.57 billion in the second quarter compared to $ 4.5 billion.

The current revenue of the current quarter is expected before interest, taxes, depreciation and repayment between $ 115 million and 130 million, largely in line with the analysts’ estimate.

(Beglulu’s Becash Sr.