Earnings Preview: What to Expect From Uber’s Report

Uber Technologies, Inc. UBER, headquartered in San Francisco, California, develops and operates proprietary technology applications and provides ride-hailing services. Valued at $137.37 billion by market cap, the company develops applications for road transportation, navigation, ride-sharing, and payment processing solutions. The ride-hailing company is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, Aug. 6. 

Ahead of the event, analysts expect UBER to report a profit of $0.31 per share on a diluted basis, up 72.2% from $0.18 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.

For the full year, analysts expect UBER to report EPS of $0.85, down 2.3% from $0.87 in fiscal 2023.

UBER stock has outperformed the S&P 500’s ($SPX) 19.1% gains over the past 52 weeks, with shares up 37% during this period. Similarly, it outshined the S&P 500 Technology Sector SPDR’s (XLK) 22.5% gains over the same time frame.

UBER’s overall performance can be attributed to reporting a fiscal 2023 profit, its first full-year profit since going public in 2019. The company has been profitable on an operating basis, with its Q1 income from operations coming in at $172 million, up $434 million year over year. During Q1, UBER reported 149 million monthly active platform consumers, up 15% year over year. Meanwhile, its global expansion has contributed to its recent success, as UBER now operates in 70 countries and 10,000 cities. 

UBER has expanded Comfort Electric to nearly 60 cities, partnered with companies like Revel for exclusive charging discounts, and launched products like Uber Car Seat in partnership with Nuna. Other factors contributing to its performance include expanded grocery merchant selection, increasing number of trips, new Uber Direct partnerships, Powerloop expansion, and acquiring delivery business in Taiwan for $950 million.

On Jul. 17, UBER shares closed down more than 7% after an SEC filing showed CEO Dara Khosrowshahi had sold $36 million of stock.

On May 8, UBER shares closed down more than 5% after reporting its Q1 results. Its loss per share of $0.32 missed Wall Street expectations of an EPS of $0.21. The company’s revenue was $10.13 billion, exceeding Wall Street forecasts of $10.08 billion. Moreover, its gross bookings grew 20% year over year, and trips increased 21% year over year to 2.57 billion, or about 28 million trips per day on average. 

For Q2, UBER anticipates gross bookings of $38.75 billion to $40.25 billion, representing 18% to 23% year-over-year growth on a constant currency basis. Its adjusted EBITDA is expected to be between $1.45 billion and $1.53 billion, up 58% to 67% year over year.

Analysts’ consensus opinion on UBER stock is bullish, with a “Strong Buy” rating overall. Out of 41 analysts covering the stock, 35 advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, and three give a “Hold.” The average analyst price target for UBER is $87.03, indicating a potential upside of 32.4% from the current levels. 

On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.