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Why Is Uber (UBER) Down 3.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have lost about 3.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
Uber Reports Q2 Earnings, Revenues Beat
Uber second-quarter 2021 earnings of 58 cents per share against the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago period, the company had incurred a loss of $1.02. Total revenues of $3,929 million outperformed the Zacks Consensus Estimate of $3,740.3 million. The top line rose significantly year over year (improved 35% sequentially), primarily due to recovery in its mobility operations.
While adjusted EBITDA loss narrowed to $509 million from $837 million in the year-ago quarter, it widened by $150 million from the first quarter of 2021 due to increased investments on drivers to meet the spurt in mobility demand.
In the second quarter, majority (50%) of the company’s revenues came from Delivery. Revenues from this segment, which is experiencing a boom amid the pandemic-triggered rise in online order volumes, surged more than 100% year over year to $1,963 million. Revenues from the Mobility segment recovered significantly, rising more than 100% from the second quarter of 2020 when coronavirus-led restrictions caused a dramatic drop in ride volumes. Mobility revenues amounted to $1,618 million. Meanwhile, Freight revenues climbed 65% year over year to $348 million.
Total revenues soared 76% year over year to $1,984 million in the United States and Canada. While revenues increased 44% to $307 million in Latin America, it skyrocketed more than 150% to $929 million in Europe, the Middle East and Africa. Revenues soared more than 200% year over year to $709 million in the Asia-Pacific region. Monthly active platform consumers jumped 84% to 101 million.
Gross bookings from Mobility improved more than 100% to $8,640 million. Gross bookings from Delivery augmented 85% to $12,912 million. Gross bookings from Freight also climbed 64% to $348 million. Total gross bookings ascended more than 100% to $21,900 million.
Cost of revenue increased significantly year over year due to rise in courier payments and Freight carrier payments, higher incentives in some markets, as well as costs associated with ride volume increases in the Mobility segment. Total costs and expenses surged 45.4% year over year to $5,117 million with sales and marketing expenses rising 70.7% and general and administrative expenses ascending 9%.
Uberexited the second quarter with cash and cash equivalents of $4,443 million compared with $5,647 million at the end of 2020. Long-term debt, net of current portion at the end of the quarter, was $7,798 million compared with $7,560 million at December 2020-end.
The company is hopeful about its ability to achieve adjusted EBITDA profits by the fourth quarter of 2021. For the third quarter, Uber expects Adjusted EBITDA loss to reduce to less than $100 million. Gross bookings are estimated in the band of $22-$24 billion in the current quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Uber has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Uber has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Uber (UBER) Down 3.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have lost about 3.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
Uber Reports Q2 Earnings, Revenues Beat
Uber second-quarter 2021 earnings of 58 cents per share against the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago period, the company had incurred a loss of $1.02. Total revenues of $3,929 million outperformed the Zacks Consensus Estimate of $3,740.3 million. The top line rose significantly year over year (improved 35% sequentially), primarily due to recovery in its mobility operations.
While adjusted EBITDA loss narrowed to $509 million from $837 million in the year-ago quarter, it widened by $150 million from the first quarter of 2021 due to increased investments on drivers to meet the spurt in mobility demand.
In the second quarter, majority (50%) of the company’s revenues came from Delivery. Revenues from this segment, which is experiencing a boom amid the pandemic-triggered rise in online order volumes, surged more than 100% year over year to $1,963 million. Revenues from the Mobility segment recovered significantly, rising more than 100% from the second quarter of 2020 when coronavirus-led restrictions caused a dramatic drop in ride volumes. Mobility revenues amounted to $1,618 million. Meanwhile, Freight revenues climbed 65% year over year to $348 million.
Total revenues soared 76% year over year to $1,984 million in the United States and Canada. While revenues increased 44% to $307 million in Latin America, it skyrocketed more than 150% to $929 million in Europe, the Middle East and Africa. Revenues soared more than 200% year over year to $709 million in the Asia-Pacific region. Monthly active platform consumers jumped 84% to 101 million.
Gross bookings from Mobility improved more than 100% to $8,640 million. Gross bookings from Delivery augmented 85% to $12,912 million. Gross bookings from Freight also climbed 64% to $348 million. Total gross bookings ascended more than 100% to $21,900 million.
Cost of revenue increased significantly year over year due to rise in courier payments and Freight carrier payments, higher incentives in some markets, as well as costs associated with ride volume increases in the Mobility segment. Total costs and expenses surged 45.4% year over year to $5,117 million with sales and marketing expenses rising 70.7% and general and administrative expenses ascending 9%.
Uberexited the second quarter with cash and cash equivalents of $4,443 million compared with $5,647 million at the end of 2020. Long-term debt, net of current portion at the end of the quarter, was $7,798 million compared with $7,560 million at December 2020-end.
The company is hopeful about its ability to achieve adjusted EBITDA profits by the fourth quarter of 2021. For the third quarter, Uber expects Adjusted EBITDA loss to reduce to less than $100 million. Gross bookings are estimated in the band of $22-$24 billion in the current quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Uber has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Uber has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.