DoorDash Prepares for Earnings Report with Strong Projections

DoorDash, Inc. (DASH), based in San Francisco, boasts a market capitalization of $76.1 billion. As the leading food delivery platform in the United States, it has carved out a significant market share since its founding in 2013. The company links consumers to restaurants, grocery stores, and retailers via its DoorDash and Wolt marketplaces. In addition to its core on-demand delivery services, DoorDash also offers white-label logistics through DoorDash Drive and subscription options like DashPass.

Upcoming Earnings Report and Expectations

DASH is set to announce its Q1 earnings on Wednesday, May 7, after market hours. Analysts anticipate an earnings per share (EPS) of $0.38, reflecting a 733.3% increase from the loss of $0.06 reported in the same quarter last year. The company has met or exceeded earnings estimates in two of the past four quarters but fell short in the other two. In the most recent quarter, the EPS of $0.33 was 2.9% below analysts’ expectations.

Long-Term Financial Projections

For fiscal 2025, analysts are forecasting an EPS of $2.11—an increase of 627.6% from the $0.29 predicted for fiscal 2024. The outlook for fiscal 2026 remains strong, with an expected year-over-year growth of 70.1%, bringing the EPS to $3.59.

Performance and Analyst Ratings

DASH shares have appreciated by 47.7% over the past year, significantly outperforming the S&P 500 Index, which saw an 8.2% gain, as well as the Consumer Discretionary Select Sector SPDR Fund’s 11.4% returns during the same period.

After releasing its Q4 earnings on February 11, DASH shares experienced a modest increase. The report indicated a remarkable 25% year-over-year rise in revenue, totaling $2.9 billion, driven by a 19% increase in total orders and a 21% growth in marketplace gross order value (GOV). Additionally, the adjusted EBITDA stood at $363 million.

Analysts remain cautiously optimistic about DASH’s prospects, maintaining an overall “Moderate Buy” rating. Of the 37 analysts reviewing the stock, 23 suggest a “Strong Buy,” three recommend a “Moderate Buy,” and 11 advise holding. The mean price target of $217.91 suggests a 16.4% upside potential from the current trading levels.

On the date of publication, Kritika Sarmah 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.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.