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UBER Gears Up to Report Q3 Earnings: What's in the Cards?

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Uber Technologies (UBER - Free Report) is scheduled to report third-quarter 2023 results on Nov 7, before market open.

UBER has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missed in the remaining one), the average beat being 474.82%.

Given this backdrop, let’s see how things have shaped up for Uber this earnings season.

Q3 Expectations

The Zacks Consensus Estimate for UBER’s third-quarter 2023 revenues is pegged at $9.47 billion, indicating 13.47% growth year over year. The top line is likely to have benefited from strength in its Delivery business and improvement in the Mobility business.

The Zacks Consensus Estimate for third-quarter Delivery revenues is pegged at $3,132 million, indicating 13.1% growth from the year-ago reported figure. The uptick is likely to have come from online order volumes surging.

The Zacks Consensus Estimate for third-quarter Mobility revenues is pegged at $4,936 million, indicating 29.1% growth from the year-ago reported figure.

The Zacks Consensus Estimate for third-quarter Freight revenues is pegged at $1,343 million, indicating a 23.3% decline from the year-ago reported figure. Lower revenue per load and volume and the challenging freight market cycle might have weighed on the segment.

On the flip side, high sales and marketing expenses and costs associated with paying incentives to drivers due to changes in the business model in some countries are likely to have affected Uber’s bottom line in the third quarter.  The Zacks Consensus Estimate for UBER’s third-quarter 2023 earnings has remained flat in the past 90 days.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for UBER this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

UBER has an Earnings ESP of -53.13% and a Zacks Rank #1.

Highlights of Q2

Uber reported second-quarter 2023 earnings of 18 cents per share compared with the Zacks Consensus Estimate of a loss of a penny. In second-quarter 2022, Uber reported a loss of $1.33 per share. Total revenues of $9,230 million missed the Zacks Consensus Estimate of $9,320.3 million. The top line jumped 14.3% year over year.

Stocks to Consider

Here are a few stocks from the broader Zacks Computer and Technologysector that investors may consider, as our model shows that these have the right combination of elements to beat their third-quarter 2023 earnings:

NetEase, Inc. (NTES - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #1. NTES will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NTES’ third-quarter 2023 earnings has been revised upward by 6.1% in the past 90 days. NTES delivered a trailing four-quarter earnings surprise of 24.54%, on average.

Paylocity Holding Corporation (PCTY - Free Report) has an Earnings ESP of +11.32% and a Zacks Rank #2. PCTY will release results on Nov 2.

The Zacks Consensus Estimate for PCTY’s third-quarter 2023 earnings has been revised upward by 1.9% in the past 90 days. PCTY delivered a trailing four-quarter earnings surprise of 39.72%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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