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Uber Technologies (UBER) Q2 Earnings Miss, Stock Up 3.2%

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Uber Technologies, Inc. (UBER - Free Report) stock has gained 3.2% since its second-quarter 2022 earnings release on Aug 2. The uptick can be attributed to better-than-expected revenue performance.

Uber Technologies incurred a loss of $1.33 per share in the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 25 cents. In second-quarter 2021, Uber reported earnings of 58 cents per share.

Total revenues of $8,073 million also outperformed the Zacks Consensus Estimate of $7,434.5 million. The top line jumped more than 100% year over year, backed by contribution from the acquisition of Transplace by Uber Freight and change in the business model for the company’s UK Mobility business.

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote

In the reported quarter, majority (44%) of the company’s revenues came from Mobility. Revenues from this segment jumped more than 100% year over year to $3,553 million as ride volumes continued to rebound. Revenues from the Delivery segment increased 37% year over year to $2,688 million, owing to a surge in online order volumes. Freight revenues climbed to $1,832 million from $348 million in the year-ago period, thanks to the acquisition of Transplace.

Total revenues soared more than 100% year over year to $4,936 million in the United States and Canada. While revenues increased 57% to $481 million in Latin America, the same skyrocketed 99% to $1,846 million in Europe, the Middle East and Africa. Revenues rose 14% to $810 million in the Asia-Pacific region. Monthly active platform consumers jumped 21% to 122 million.  

Adjusted EBITDA in the second quarter was $364 million against adjusted EBITDA loss of $509 million in the year-ago period. Total costs and expenses surged 71.7% year over year to $8,786million.

Gross bookings from Mobility improved 55% to $13,364million. Gross bookings from Delivery augmented by 7% to $13,876 million. Gross bookings from Freight surged $1,838 million in the second quarter from $348 million in the year-ago quarter. Total gross bookings ascended 33% to $29,078 million.

Uber exited the second quarter with cash and cash equivalents of $4,397 million compared with $4,184 million at the end of March 2022. Long-term debt, net of current portion at the end of the reported quarter, was $9,271 million compared with $9,273 million at March 2022-end.

Operating cash flow came in at $439 million compared with a loss of $341 million in the year-ago quarter. Free cash flow was $382 million compared with a loss of $398 million in the year-ago quarter. The company became cash-flow positive for the first time.

Q3 Guidance

For the third quarter, Uber expects gross bookings of $29 billion-$30 billion. Adjusted EBITDA is estimated to be $440 million-$470 million.

Zacks Rank & Stock to Consider

Currently, Uber Technologies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A better-ranked stock in the broader Computer and Technology sector is Sierra Wireless, Inc.(SWIR - Free Report) , carrying a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 223.7%, on average, in the trailing four quarters.

Over the past year, the stock has gained 40.4%. Earnings estimates for the current year have moved up 616.7% since July 2021. Sierra Wireless continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.

Aviat Networks, Inc.(AVNW - Free Report) sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 15.7% upward since July 2021.

Aviat Networks pulled off a trailing four-quarter earnings surprise of 17.4%, on average. It has soared 158.8% in the past two years.


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