Uber (UBER) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2023/11/06 2:03 am EST

Ride sharing and on demand delivery service Uber (NYSE: UBER) will be reporting results tomorrow morning. Here's what you need to know.

Last quarter Uber reported revenues of $9.2 billion, up 14.3% year on year, missing analyst expectations by 1.2%. It was a decent quarter for the company with strong user growth. Free cash flow was also solid and so was profit guidance for the next quarter. On the other hand, it was unfortunate that revenue slightly missed analysts' expectations. The company reported 137 million users, up 12.3% year on year.

Is Uber buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Uber's revenue to grow 14.3% year on year to $9.5 billion, slowing down from the 72.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Uber Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 5.6%.

Looking at Uber's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Booking delivered top-line growth of 21.3% year on year, beating analyst estimates by 1.1% and Airbnb reported revenues up 17.8% year on year, exceeding estimates by 0.8%. Booking traded down 3.8% on the results, Airbnb was down 3.4%.

Read our full analysis of Booking's results here and Airbnb's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 2.4% over the last month. Uber is up 5.6% during the same time, and is heading into the earnings with analyst price target of $57.8, compared to share price of $48.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.