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Why Is Uber (UBER) Up 10.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Uber due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat Uber in Q4
Uberreported fourth-quarter 2023 earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 15 cents and improved more than 100% year over year. Total revenues of $9,936 million beat the Zacks Consensus Estimate of $9,746.5 million. The top line jumped 15.4% year over year.
In the reported quarter, the majority (54.5%) of the company’s revenues came from Mobility. Revenues from this segment jumped 34% year over year to $5,537 million. Revenues from the Delivery segment increased 6% year over year to $3,119 million. Freight revenues fell to $1,280 million, down 17% from the year-ago period, due to lower revenue per load and volume and the challenging freight market cycle.
Adjusted EBITDA in the fourth quarter surged 93% to $1,283 million.
Gross bookings from Mobility improved 29% to $19,285 million. Gross bookings from Delivery augmented 19% to $17,011 million. Gross bookings from Freight came in at $1,279 million in the fourth quarter, down 17% from the year-ago quarter. Total gross bookings ascended 22% to $37,575 million.
Uber exited the fourth quarter with cash and cash equivalents of $4,680 million compared with $4,448 million at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $9,459 million compared with $9,252 million at prior quarter -end.
Operating cash flow came in at $823 million in the reported quarter. The free cash flow was $768 million.
Q1 Guidance
For the first quarter of 2024, Uber expects gross bookings of $37 billion-$38.5 billion. The adjusted EBITDA is estimated to be $1.26 billion to $1.34 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 34.91% due to these changes.
VGM Scores
At this time, Uber has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Uber has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Uber (UBER) Up 10.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Uber due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat Uber in Q4
Uber reported fourth-quarter 2023 earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 15 cents and improved more than 100% year over year. Total revenues of $9,936 million beat the Zacks Consensus Estimate of $9,746.5 million. The top line jumped 15.4% year over year.
In the reported quarter, the majority (54.5%) of the company’s revenues came from Mobility. Revenues from this segment jumped 34% year over year to $5,537 million. Revenues from the Delivery segment increased 6% year over year to $3,119 million. Freight revenues fell to $1,280 million, down 17% from the year-ago period, due to lower revenue per load and volume and the challenging freight market cycle.
Adjusted EBITDA in the fourth quarter surged 93% to $1,283 million.
Gross bookings from Mobility improved 29% to $19,285 million. Gross bookings from Delivery augmented 19% to $17,011 million. Gross bookings from Freight came in at $1,279 million in the fourth quarter, down 17% from the year-ago quarter. Total gross bookings ascended 22% to $37,575 million.
Uber exited the fourth quarter with cash and cash equivalents of $4,680 million compared with $4,448 million at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $9,459 million compared with $9,252 million at prior quarter -end.
Operating cash flow came in at $823 million in the reported quarter. The free cash flow was $768 million.
Q1 Guidance
For the first quarter of 2024, Uber expects gross bookings of $37 billion-$38.5 billion. The adjusted EBITDA is estimated to be $1.26 billion to $1.34 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 34.91% due to these changes.
VGM Scores
At this time, Uber has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Uber has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.