Yahoo Finance Uber (UBER) Up 0.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Uber Technologies (UBER). Shares have added about 0.2% in that time frame, underperforming 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 drivers.
Uber Surpass Q1 Earnings & Revenues Estimates
Uber Technologies reported first-quarter 2023 loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. In first-quarter 2023, Uber reported loss of $3.04 per share.
Total revenues of $8,823 million outperformed the Zacks Consensus Estimate of $8,697.5 million. The top line jumped 29% year over year.
In the reported quarter, the majority (49%) of the company’s revenues came from Mobility. Revenues from this segment jumped 72% year over year to $4,330 million. Revenues from the Delivery segment increased 23% year over year to $3,093 million. Freight revenues climbed to $1,400 million, down 23% from the year-ago period, due to lower revenue per load and volume,
both due to the challenging freight market cycle.
Total revenues soared 12% year over year to $5,132 million in the United States and Canada. While revenues increased 31% to $565 million in Latin America, the same skyrocketed 86% to $2,094 million in Europe, the Middle East and Africa. Revenues rose 41% to $1,032 million in the Asia-Pacific region. Monthly active platform consumers jumped 13% to 130 million.
Adjusted EBITDA in the first quarter was $761 million compared with adjusted EBITDA of $168 million in the year-ago period.
Gross bookings from Mobility improved 40% to $14,981 million. Gross bookings from Delivery augmented by 8% to $15,026 million. Gross bookings from Freight came in at $1,401 million in the first quarter, down 23% from the year-ago quarter. Total gross bookings ascended 19% to $31,408 million.
Uber exited the first quarter with cash and cash equivalents of $4,045 million compared with $4,208 million at the end of December 2022. Long-term debt, net of the current portion at the end of the reported quarter, was $9,257million compared with $9,265 million at December 2022-end.
Operating cash flow came in at $606 million compared with $15 million in the year-ago quarter. The free cash flow was $549 million.
Q2 Guidance
For the second quarter of 2023, Uber expects gross bookings of $33 billion-$34 billion. The adjusted EBITDA is estimated to be $800 million-$850 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 58.67% due to these changes.
VGM Scores
Currently, Uber has a strong 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. Notably, Uber has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Uber is part of the Zacks Internet - Services industry. Over the past month, Alphabet (GOOGL), a stock from the same industry, has gained 16.6%. The company reported its results for the quarter ended March 2023 more than a month ago.
Alphabet reported revenues of $58.07 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.17 for the same period compares with $1.23 a year ago.
Alphabet is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +9.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Alphabet has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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