Have you evaluated the performance of Uber Technologies' (UBER Quick QuoteUBER - Free Report) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this ride-hailing company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While analyzing UBER's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $11.19 billion, showing rise of 20.4%. We will now explore the breakdown of UBER's overseas revenue to assess the impact of its international operations.

A Look into UBER's International Revenue Streams

Latin America generated $679 million in revenues for the company in the last quarter, constituting 6.07% of the total. This represented a surprise of -12% compared to the $771.58 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $679 million (6.35%), and in the year-ago quarter, it contributed $642 million (6.91%) to the total revenue.

Europe, Middle East and Africa accounted for 28.57% of the company's total revenue during the quarter, translating to $3.2 billion. Revenues from this region represented a surprise of +8.11%, with Wall Street analysts collectively expecting $2.96 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $2.99 billion (27.92%) and $2.56 billion (27.55%) to the total revenue, respectively.

During the quarter, Asia Pacific contributed $1.31 billion in revenue, making up 11.68% of the total revenue. When compared to the consensus estimate of $1.46 billion, this meant a surprise of -10.53%. Looking back, Asia Pacific contributed $1.21 billion, or 11.30%, in the previous quarter, and $1.15 billion, or 12.38%, in the same quarter of the previous year.

International Revenue Predictions

Wall Street analysts expect Uber to report a total revenue of $11.59 billion in the current fiscal quarter, which suggests an increase of 16.7% from the prior-year quarter. Revenue shares from Latin America, Europe, Middle East and Africa and Asia Pacific are predicted to be 6.9%, 26.9% and 13.3%, corresponding to amounts of $798.6 million, $3.11 billion and $1.54 billion, respectively.

Analysts expect the company to report a total annual revenue of $43.42 billion for the full year, marking an increase of 16.5% compared to last year. The expected revenue contributions from Latin America, Europe, Middle East and Africa and Asia Pacific are projected to be 7% ($3.04 billion), 27.7% ($12.03 billion) and 12.8% ($5.57 billion) of the total revenue, in that order.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Uber. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Uber, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exploring Recent Trends in Uber's Stock Price

Over the past month, the stock has seen a decline of 1.4% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.4%. The Zacks Computer and Technology sector, Uber's industry group, has ascended 2.1% over the identical span. In the past three months, there's been an increase of 6.9% in the company's stock price, against a rise of 5.5% in the S&P 500 index. The broader sector has increased by 5.5% during this interval.