Uber Technologies (UBER Quick QuoteUBER - Free Report) is slated to release first-quarter 2025 results on May 7, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $11.6 billion, respectively.

The earnings estimate for the to-be-reported quarter has improved by 2% over the past 60 days. UBER incurred a loss of 32 cents in the first quarter of 2024. The Zacks Consensus Estimate for quarterly revenues suggests a 14.5% 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 $50.4 billion, suggesting an increase of 14.6% year over year. The consensus mark for full-year EPS is $2.51, implying a 45% year-over-year contraction.

In the trailing four quarters, Uber surpassed EPS estimates on three occasions and missed once, with the average earnings surprise being 133.5%.

Q1 Earnings Whispers for UBER

Our proven model does not conclusively predict an earnings beat for Uber this time. 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 not 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 -0.20% and a Zacks Rank #3 currently.

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

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

Factors Shaping UBER’s Q1 Results

Factors like high inflation, currency headwinds and unfavorable weather might have caused a slowdown in gross bookings in the first quarter. Uber expects a strong dollar to hurt its first-quarter 2025 results. In the March quarter, gross bookings are anticipated to be in the $42 billion to $43.5 billion range, suggesting growth on a constant currency basis in the 17-21% band from first-quarter 2024 actuals.

The guidance includes an estimated 5.5 percentage point impact from a strong greenback.  It implies a roughly 7 and 4 percentage point currency headwind to Mobility and Delivery growth, respectively. Our estimate for first-quarter 2025 gross bookings is currently pegged at $43.3 billion. Freight revenues are likely to have suffered in the to-be-reported quarter due to a challenging freight market. 

The silver lining is that since the first quarter covered a period (January-March) of normal business and the new tariffs took effect in the second quarter, tariff woes are unlikely to be reflected in the numbers of the March quarter. We believe that more than the financial numbers, it is the guidance that investors will watch more closely.

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. A commentary on the U.S. Federal Trade Commission’s recent decision to sue Uber, alleging deceptive billing practices, on the call cannot be ruled out.

UBER’s Price Performance & Valuation

Uber has navigated the recent tariff-induced stock market volatility well, registering a 34.1% year-to-date gain, while the Zacks Internet-Services industry is down in double digits. The S&P 500 index is down 5.7%. Uber’s main competitor, Lyft (LYFT Quick QuoteLYFT - Free Report) , too, has suffered a decline of 3.4% in the same timeframe. Another industry player, DoorDash (DASH Quick QuoteDASH - Free Report) , has performed better than Lyft but underperformed Uber year to date, gaining 17%. 
 

YTD Price Performance Comparison

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From a valuation perspective, Uber is trading relatively expensive. Going by its price/sales ratio, the company is trading at a forward earnings multiple of 28.66, above the industry’s 17.12. The company has a Value Score of D. Meanwhile, Lyft looks too cheap at a forward earnings multiple of 10.99, whereas DoorDash’s P/E sits at 75.32. Lyft and DoorDash have a Value Score of B and F, respectively.

UBER’s P/E F12M Vs. Industry, LYFT & DASH
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How to Play Uber Pre-Q1 Earnings

Agreed that Uber’s valuation is anything but tempting. The company’s high debt levels, concerns pertaining to the slowdown of gross bookings, and the FTC allegations represent further headwinds. However, not all is gloom and doom for this dominant ride-sharing company.

The company’s diversification efforts and shareholder-friendly approach are praiseworthy. Uber’s large size (market capitalization of $169.46 billion) positions it well to overcome turbulent times, such as the current one. Diversification is imperative for big companies to reduce risks, and Uber has excelled in this area. The company has engaged in numerous acquisitions, geographic and product diversifications, and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. 

Prudent investments enable Uber to extend its services and solidify its comprehensive offerings. Moreover, Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. To this end, the company has partnerships with many companies. By adopting this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently.

So, all in all, it is worth holding on to Uber stock now. However, investing ahead of its upcoming results doesn’t seem like a good idea. It’s better to wait for management’s commentary on tariffs and updated guidance to see the potential impact.