Uber Faces Challenges Ahead of Q4 Earnings Release
Forecasted Earnings Show Differences from Last Year
With a market cap of $138.3 billion, Uber Technologies, Inc. (UBER) stands as a leading global company specializing in transportation, food delivery, and logistics. Operating through its Mobility, Delivery, and Freight segments, Uber links consumers and businesses with ridesharing and delivery services in various regions worldwide. The San Francisco-based firm is set to announce its fiscal Q4 earnings results on Wednesday, Feb. 5.
Analysts Predict Decreased Quarterly Profits
As the earnings date approaches, analysts expect UBER to report a profit of $0.56 per share, indicating a decline of 15.2% from last year’s $0.66 per share. Historically, Uber has surpassed Wall Street’s earnings estimates in three of its last four quarterly reports, with one miss. In its latest quarter, UBER significantly outperformed the consensus EPS estimate by 192.7%.
Looking Ahead to Fiscal 2024
For fiscal 2024, analysts project an EPS surge to $1.91 per share, a remarkable increase of 119.5% from $0.87 per share in fiscal 2023.
Stock Performance Compared to Major Indices
Uber Technologies has gained nearly 4% over the past year, underperforming the S&P 500 Index’s ($SPX) 22% gain and the Industrial Select Sector SPDR Fund’s (XLI) 18.5% return during the same period.
Concerns Affecting Stock Value
Despite reporting a strong Q3 EPS of $1.20 and revenue of $11.2 billion, shares fell by 9.3% on Oct. 31 due to worries about future prospects. The company projected Q4 gross bookings between $42.8 billion and $44.3 billion, falling short of Wall Street estimates and suggesting a slowdown in the ride-hailing sector. This raised anxieties about lower demand, impacted by inflation and consumers shifting to more affordable transportation methods.
Additionally, on Dec. 5, Uber’s stock dropped 9.6% amid escalating competition from Waymo, which is expanding its autonomous ride-hailing services into Miami and partnering with Moove for fleet management, potentially diminishing Uber’s market share.
Analysts Maintain Optimistic Outlook
Analysts maintain a generally positive sentiment towards Uber Technologies, giving it a “Strong Buy” rating overall. Out of 45 analysts covering the stock, 36 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and six advise a “Hold.” While this is slightly less bullish than three months prior (when there were 37 “Strong Buy” ratings), UBER is currently trading below the average analyst price target of $91.31.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any securities mentioned in this article. All information in this article is intended solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
