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Will Uptick in Gross Bookings Aid UBER's Q4 Earnings Results?
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Uber Technologies (UBER - Free Report) is slated to release fourth-quarter 2024 results on Feb. 5, before market open. The results will be highly influenced by how the company performs with respect to a key metric – gross bookings.
See the Zacks Earnings Calendar to stay ahead of market-making news.
UBER beat earnings estimates in three of the trailing four quarters and missed once, the average beat being 83%. Before we delve into the factors that might have shaped UBER’s upcoming results, here is a snapshot of its third-quarter 2024 earnings report.
UBER’s Q3 Highlights
In the third quarter of 2024, the ride hailing reported earnings per share of $1.20, which rose from the year-ago figure of 10 cents and beat the Zacks Consensus Estimate of 41 cents. Total revenues were $11.18 billion, witnessing year-over-year growth of 20.4%. The top line edged past the consensus mark of $11 billion.
With economic activities returning to normal levels in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand with segmental revenues increasing 26% in the September quarter.
With customer traffic picking up, gross bookings from the unit were highly impressive, aiding third-quarter results. Gross bookings from the Mobility segment in the September quarter increased 17% on a year-over-year basis to $21 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 18% year over year. Gross bookings from the Delivery segment in the September quarter rose 16% on a year-over-year basis to $18.7 billion. Trips soared 17% to 2.9 billion, or approximately 31 million trips per day on average.
Uber exited the third quarter with cash and cash equivalents of $6.15 billion compared with $4.49 billion at the end of the prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $10.98 billion compared with $9.45 billion in the previous quarter. Operating cash flow was $2.15 billion in the reported quarter. The free cash flow was $2.1 billion.
Gross Bookings Are Likely to Have Been Impressive in Q4
UBER’s performance in the to-be-reported quarter might have been boosted by robust gross bookings. Uber expects gross bookings in the December quarter to be in the $42.75-$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.
We expect gross bookings in Uber’s Mobility segment to be $23.25 billion, representing 20.6% growth from year-ago actuals. Gross bookings in Uber’s Delivery segment are expected to be $19.6 billion, representing 15.2% growth from year-ago actuals.
For the final quarter, the year-over-year growth in trips is expected to be similar to that witnessed in third-quarter 2024. The outlook assumes a roughly two percentage point currency headwind.
Overall Earnings & Revenue Estimations of UBER
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 50 cents per share, indicating a decline of 24.2% on a year-over-year basis. The consensus mark for earnings per share has moved down 5 cents in the past 30 days. The Zacks Consensus Estimate of $11.74 billion for sales indicates an 18.2% rise on a year-over-year basis.
Our proven model predicts an earnings beat for Uber, as it has the right combination of a positive Earnings ESP and an appropriate Zacks Rank. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has an Earnings ESP of +1.43% and a Zacks Rank #3 (Hold) at present.
Other Favorable Combinations in the Technology Space
It is scheduled to post fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at 23 cents per share. LYFT exceeded earnings estimates in each of the trailing four quarters, the average surprise being 68.9%. LYFT shares have gained 28% in the past six months.
DoorDash (DASH - Free Report) has an Earnings ESP of +22.50% and a Zacks Rank #3 at present. It is scheduled to post fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share.
DASH exceeded earnings estimates twice in the last four quarters, missing the mark on the other two occasions. The average miss is 86.2%.
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Will Uptick in Gross Bookings Aid UBER's Q4 Earnings Results?
Uber Technologies (UBER - Free Report) is slated to release fourth-quarter 2024 results on Feb. 5, before market open. The results will be highly influenced by how the company performs with respect to a key metric – gross bookings.
See the Zacks Earnings Calendar to stay ahead of market-making news.
UBER beat earnings estimates in three of the trailing four quarters and missed once, the average beat being 83%. Before we delve into the factors that might have shaped UBER’s upcoming results, here is a snapshot of its third-quarter 2024 earnings report.
UBER’s Q3 Highlights
In the third quarter of 2024, the ride hailing reported earnings per share of $1.20, which rose from the year-ago figure of 10 cents and beat the Zacks Consensus Estimate of 41 cents. Total revenues were $11.18 billion, witnessing year-over-year growth of 20.4%. The top line edged past the consensus mark of $11 billion.
With economic activities returning to normal levels in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand with segmental revenues increasing 26% in the September quarter.
With customer traffic picking up, gross bookings from the unit were highly impressive, aiding third-quarter results. Gross bookings from the Mobility segment in the September quarter increased 17% on a year-over-year basis to $21 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 18% year over year. Gross bookings from the Delivery segment in the September quarter rose 16% on a year-over-year basis to $18.7 billion. Trips soared 17% to 2.9 billion, or approximately 31 million trips per day on average.
Uber exited the third quarter with cash and cash equivalents of $6.15 billion compared with $4.49 billion at the end of the prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $10.98 billion compared with $9.45 billion in the previous quarter. Operating cash flow was $2.15 billion in the reported quarter. The free cash flow was $2.1 billion.
Gross Bookings Are Likely to Have Been Impressive in Q4
UBER’s performance in the to-be-reported quarter might have been boosted by robust gross bookings. Uber expects gross bookings in the December quarter to be in the $42.75-$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.
We expect gross bookings in Uber’s Mobility segment to be $23.25 billion, representing 20.6% growth from year-ago actuals. Gross bookings in Uber’s Delivery segment are expected to be $19.6 billion, representing 15.2% growth from year-ago actuals.
For the final quarter, the year-over-year growth in trips is expected to be similar to that witnessed in third-quarter 2024. The outlook assumes a roughly two percentage point currency headwind.
Overall Earnings & Revenue Estimations of UBER
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 50 cents per share, indicating a decline of 24.2% on a year-over-year basis. The consensus mark for earnings per share has moved down 5 cents in the past 30 days. The Zacks Consensus Estimate of $11.74 billion for sales indicates an 18.2% rise on a year-over-year basis.
Our proven model predicts an earnings beat for Uber, as it has the right combination of a positive Earnings ESP and an appropriate Zacks Rank. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has an Earnings ESP of +1.43% and a Zacks Rank #3 (Hold) at present.
Other Favorable Combinations in the Technology Space
Lyft (LYFT - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It is scheduled to post fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at 23 cents per share. LYFT exceeded earnings estimates in each of the trailing four quarters, the average surprise being 68.9%. LYFT shares have gained 28% in the past six months.
DoorDash (DASH - Free Report) has an Earnings ESP of +22.50% and a Zacks Rank #3 at present. It is scheduled to post fourth-quarter earnings on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share.
DASH exceeded earnings estimates twice in the last four quarters, missing the mark on the other two occasions. The average miss is 86.2%.