Uber (UBER) Down 10% Since Last Earnings Report: Can It Rebound?

Photo of author

By Amit

A month has gone by since the last earnings report for Uber Technologies (UBER). Shares have lost about 10% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Uber due for a breakout? 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 catalysts.

Uber Surpass Q4 Earnings & Revenues Estimates

Uber Technologies reported fourth-quarter 2022 earnings of 29 cents per share, which surpassed Zacks Consensus Estimate of a loss of 21 cents. In fourth-quarter 2021, Uber reported earnings of 44 cents per share.

Total revenues of $8,607 million outperformed the Zacks Consensus Estimate of $8,498.3 million. The top line jumped 49% year over year, backed by contributions from the acquisition of Transplace by Uber Freight and change in the business model for the company’s UK Mobility business.

In the reported quarter, the majority (48%) of the company’s revenues came from Mobility. Revenues from this segment jumped 82% year over year to $4,136 million. Revenues from the Delivery segment increased 21% year over year to $2,931 million. Freight revenues climbed to $1,540 million, up 43% from the year-ago period, thanks to the acquisition of Transplace.

Total revenues soared 38% year over year to $4,976 million in the United States and Canada. While revenues increased 31% to $547 million in Latin America, the same skyrocketed 110% to $2,092 million in Europe, the Middle East and Africa. Revenues rose 32% to $992 million in the Asia-Pacific region. Monthly active platform consumers jumped 11% to 131 million.  

Adjusted EBITDA in the fourth quarter was $665 million compared with adjusted EBITDA of $86 million in the year-ago period. Total costs and expenses increased 38.3% year over year to $8,749 million.

Gross bookings from Mobility improved 31% to $14,894 million. Gross bookings from Delivery augmented by 6% to $14,315 million. Gross bookings from Freight came in at $1,540 million in the fourth quarter, up 42% from the year-ago quarter. Total gross bookings ascended 19% to $30,749 million.

Uber exited the fourth quarter with cash and cash equivalents of $4,208 million compared with $4,865 million at the end of September 2022. Long-term debt, net of the current portion at the end of the reported quarter, was $9,265million compared with $9,268 million at September 2022-end.

Operating cash flow came in at $432 million compared with $614 million in the year-ago quarter. The free cash flow was $358 million compared with $524 million in the year-ago quarter.

Q1 Guidance

For the first quarter of 2023, Uber expects gross bookings of $31 billion-$32 billion. The adjusted EBITDA is estimated to be $660 million-$700 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 42.58% due to these changes.

VGM Scores

At this time, Uber has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. 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.


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.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Leave a Comment