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Why Is Uber (UBER) Down 19.4% 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 19.4% 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's Q4 Earnings & Revenues Beat
Uber reported fourth-quarter 2021 earnings of 44 cents per share against the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago period, the company had incurred a loss of 54 cents per share.
Total revenues of $5,778 million surpassed the Zacks Consensus Estimate of $5,391.2 million. The top line jumped 82.6% from the year-ago period (improved 19.3% sequentially), primarily due to a rebound in mobility operations and profits at the Delivery segment.
Adjusted EBITDA in the fourth quarter was $86 million against adjusted EBITDA loss of $454 million. This marks the company’s second consecutive profitable quarter as Mobility gross bookings reached pre-pandemic levels and the Delivery segment reaped profits (on an adjusted EBITDA basis) for the first time.
Uber reported net income of $892 million in the fourth quarter against net loss of $968 million reported in the year-ago period.
In the fourth quarter, majority (41.9%) of the company’s revenues came from Delivery. Revenues from this segment jumped 78% year over year to $2,420 million, thanks to the pandemic-driven rise in online order volumes. Revenues from the Mobility segment rose 55% year over year to $2,278 million. Freight revenues climbed more than 200% year over year to $1080 million, thanks to the November 2021 acquisition of Transplace. Rest of the revenues came from All Other sources.
Total revenues soared 99% year over year to $3,613 million in the United States and Canada. While revenues increased 39% to $419 million in Latin America, the same skyrocketed 50% to $995 million in Europe, the Middle East and Africa. Revenues soared 95% year over year to $751 million in the Asia-Pacific region. Monthly active platform consumers jumped 27% to 118 million.
Gross bookings from Mobility improved 67% to $11,340 million. Gross bookings from Delivery augmented 34% to $13,444 million. Gross bookings from Freight surged more than 200% to $1,082 million. Total gross bookings ascended 51% to $25,866 million.
Cost of revenues (adjusted) increased significantly year over year due to the classification of certain Delivery payments and incentives associated with business model changes in some countries. Total costs and expenses surged 56.6% year over year to $6,328 million with sales and marketing expenses rising 21.6%.
Uber exited the fourth quarter with cash and cash equivalents of $4,295 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 $9,276 million compared with $7,560 million at December 2020-end.
Q1 Outlook
Uber expects gross bookings of $25-$26 billion in the first quarter of 2022. Adjusted EBITDA is estimated in the band of $100-$130 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward 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 D on the value side, putting it in the bottom 40% 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
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.
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Why Is Uber (UBER) Down 19.4% 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 19.4% 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's Q4 Earnings & Revenues Beat
Uber reported fourth-quarter 2021 earnings of 44 cents per share against the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago period, the company had incurred a loss of 54 cents per share.
Total revenues of $5,778 million surpassed the Zacks Consensus Estimate of $5,391.2 million. The top line jumped 82.6% from the year-ago period (improved 19.3% sequentially), primarily due to a rebound in mobility operations and profits at the Delivery segment.
Adjusted EBITDA in the fourth quarter was $86 million against adjusted EBITDA loss of $454 million. This marks the company’s second consecutive profitable quarter as Mobility gross bookings reached pre-pandemic levels and the Delivery segment reaped profits (on an adjusted EBITDA basis) for the first time.
Uber reported net income of $892 million in the fourth quarter against net loss of $968 million reported in the year-ago period.
In the fourth quarter, majority (41.9%) of the company’s revenues came from Delivery. Revenues from this segment jumped 78% year over year to $2,420 million, thanks to the pandemic-driven rise in online order volumes. Revenues from the Mobility segment rose 55% year over year to $2,278 million. Freight revenues climbed more than 200% year over year to $1080 million, thanks to the November 2021 acquisition of Transplace. Rest of the revenues came from All Other sources.
Total revenues soared 99% year over year to $3,613 million in the United States and Canada. While revenues increased 39% to $419 million in Latin America, the same skyrocketed 50% to $995 million in Europe, the Middle East and Africa. Revenues soared 95% year over year to $751 million in the Asia-Pacific region. Monthly active platform consumers jumped 27% to 118 million.
Gross bookings from Mobility improved 67% to $11,340 million. Gross bookings from Delivery augmented 34% to $13,444 million. Gross bookings from Freight surged more than 200% to $1,082 million. Total gross bookings ascended 51% to $25,866 million.
Cost of revenues (adjusted) increased significantly year over year due to the classification of certain Delivery payments and incentives associated with business model changes in some countries. Total costs and expenses surged 56.6% year over year to $6,328 million with sales and marketing expenses rising 21.6%.
Uber exited the fourth quarter with cash and cash equivalents of $4,295 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 $9,276 million compared with $7,560 million at December 2020-end.
Q1 Outlook
Uber expects gross bookings of $25-$26 billion in the first quarter of 2022. Adjusted EBITDA is estimated in the band of $100-$130 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward 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 D on the value side, putting it in the bottom 40% 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
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.