Uber Technologies (UBER Quick QuoteUBER - Free Report) is slated to release fourth-quarter 2024 results on Feb. 5, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $11.7 billion, respectively.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The earnings estimate for the to-be-reported quarter has declined 9.1% over the past 60 days. The bottom-line projection indicates a year-over-year decline of 24.2%. The Zacks Consensus Estimate for quarterly revenues suggests an 18.2% uptick from the year-ago quarter’s figure.

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For 2025, the Zacks Consensus Estimate for UBER’s revenues is pegged at $50.7 billion, suggesting an increase of 15.9% year over year. The consensus mark for full-year EPS is $2.39, calling for a 28.8% year-over-year expansion.

In the trailing four quarters, UBER surpassed EPS estimates on three occasions and missed once, with the average earnings surprise being 83%.

Q4 Earnings Whispers for UBER

Our proven model predicts 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. That’s exactly 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 +1.43% and a Zacks Rank #3 currently.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape UBER’s Q4 Results

UBER’s performance in the to-be-reported quarter might have been hurt by a slowdown in gross bookings due to weakening demand in the ride-hailing market induced by factors like high inflation and a shift to cheaper transportation options.

Uber expects gross bookings in the December quarter to be in the $42.75 billion to $44.25 billion range, representing growth on a constant currency basis in the 16-20% band from fourth-quarter 2023 actuals. Our estimate is currently pegged at $44.15 billion.

For the final quarter of the year, the year-over-year growth in trips is expected to be similar to 17.5% year-over-year growth witnessed in third-quarter 2024. The outlook assumes a roughly two percentage points currency headwind to total reported year-over-year growth.

Freight revenues are likely to have suffered in the to-be-reported quarter due to a challenging freight market. Uber is focusing on autonomous vehicles to drive growth. The company is expected to provide updates on the same on the fourth-quarter conference call.

UBER Stock Price Performance & Valuation

Over the past six months, Uber has underperformed the industry, sector and S&P 500 as well as its rival Lyft (LYFT Quick QuoteLYFT - Free Report) .

6-Month Price Performance

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From a valuation perspective, Uber is trading relatively cheap. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.74, below its median of 3.01 over the last five years. It also trades at a discount compared to the industry’s 6.04.

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It’s Still Not an Opportune Time to Buy UBER Stock

Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. Also, Uber’s recent partnership with NVIDIA (NVDA Quick QuoteNVDA - Free Report) has positioned it as a formidable rival to the likes of Tesla (TSLA Quick QuoteTSLA - Free Report) in the lucrative robotaxi market. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. 

However, while its valuation may appear tempting, it does not seem to be the right time to place bets on UBER stock now. The recent slowdown in the company’s gross bookings raises grave concerns. We are also concerned about Uber’s high debt levels.