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Key Factors to Know Ahead of UBER's Third-Quarter Earnings
Uber Technologies (UBER - Free Report) is scheduled to report third-quarter 2022 results on Nov 1, before market open.
UBER has a mixed surprise history, with its earnings having outperformed the Zacks Consensus Estimate in two of the preceding four quarters (missing the mark in the other two). The average miss is 296.7%.
Let’s see how things are shaping up for Uber this earnings season.
Higher online order volumes are expected to get reflected in Uber’s delivery gross bookings results in the to-be-reported quarter. The Zacks Consensus Estimate for Delivery gross bookings indicates a rise of 8% from the year-ago quarter’s reported number. Strong performance of the Delivery segment is expected to have boosted Uber’s top line in the third- quarter.
However, the high inflation-induced softness in demand for rides is expected to have hurt the Mobility segment’s performance. The Zacks Consensus Estimate for revenues from the Mobility unit indicates a decline of 1.2% from the sequential quarter’s reported number. High sales and marketing expenses, and costs associated with paying incentives to drivers due to business model changes in some countries, are also likely to have hurt Uber’s bottom line in the third quarter.
What the Zacks Model Unveils
The proven Zacks model does not 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 chances of beating estimates. This is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Uber has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Uber carries a Zacks Rank #3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Copa Holdings (CPA - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank #2. CPA will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.
ArcBest Corporation (ARCB - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank of 3. ARCB will release results on Nov 1.
ArcBest has an expected earnings growth rate of 66.43% for the current year. ARCB delivered a trailing four-quarter earnings surprise of 22.29%, on average. ARCB has a long-term earnings growth rate of 17.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.