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Uber (UBER) Down 1% Since Last Earnings Report: Can It Rebound?
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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 1% 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 drivers.
Earnings Beat at Uber in Q2
Uber reported second-quarter 2023 earnings of 18 cents per share, compared to the Zacks Consensus Estimate of a loss of a penny. In second-quarter 2022, Uber reported a loss of $1.33 per share. Total revenues of $9,230 million missed the Zacks Consensus Estimate of $9,320.3 million. The top line jumped 14.3% year over year.
In the reported quarter, the majority (53%) of the company’s revenues came from Mobility. Revenues from this segment jumped 38% year over year to $4,894 million. Revenues from the Delivery segment increased 14% year over year to $3,057 million. Freight revenues fell to $1,279 million, down 30% from the year-ago period, due to lower revenue per load and volume and the challenging freight market cycle.
Total revenues soared 4% year over year to $5,129 million in the United States and Canada. While revenues increased 30% to $627 million in Latin America, the same surged 31% to $2,412 million in Europe, the Middle East and Africa. Revenues rose 31% to $1,062 million in the Asia-Pacific region. Monthly active platform consumers jumped 12% to 137 million.
Adjusted EBITDA in the second quarter surged more than 100% to $916 million compared with adjusted EBITDA of $364 million in the year-ago period.
Gross bookings from Mobility improved 25% to $16,728 million. Gross bookings from Delivery augmented 12% to $15,595 million. Gross bookings from Freight came in at $1,278 million in the second quarter, down 30% from the year-ago quarter. Total gross bookings ascended 16% to $33,601 million.
Uber exited the second quarter with cash and cash equivalents of $4,995 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 $9,255 million compared with $9,265 million at December 2022-end.
Operating cash flow came in at $1,190 million compared with $439 million in the year-ago quarter. The free cash flow was $1,140 million.
Q3 Guidance
For the third quarter of 2023, Uber expects gross bookings of $34 billion-$35 billion. The adjusted EBITDA is estimated to be $975 million to $1.025 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 181.63% due to these changes.
VGM Scores
At this time, Uber has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 C. 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. It comes with little surprise Uber has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Uber belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG - Free Report) , has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Alphabet Inc. reported revenues of $62.07 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.44 for the same period compares with $1.21 a year ago.
Alphabet Inc. is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +36.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of B.
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Uber (UBER) Down 1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have lost about 1% 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 drivers.
Earnings Beat at Uber in Q2
Uber reported second-quarter 2023 earnings of 18 cents per share, compared to the Zacks Consensus Estimate of a loss of a penny. In second-quarter 2022, Uber reported a loss of $1.33 per share. Total revenues of $9,230 million missed the Zacks Consensus Estimate of $9,320.3 million. The top line jumped 14.3% year over year.
In the reported quarter, the majority (53%) of the company’s revenues came from Mobility. Revenues from this segment jumped 38% year over year to $4,894 million. Revenues from the Delivery segment increased 14% year over year to $3,057 million. Freight revenues fell to $1,279 million, down 30% from the year-ago period, due to lower revenue per load and volume and the challenging freight market cycle.
Total revenues soared 4% year over year to $5,129 million in the United States and Canada. While revenues increased 30% to $627 million in Latin America, the same surged 31% to $2,412 million in Europe, the Middle East and Africa. Revenues rose 31% to $1,062 million in the Asia-Pacific region. Monthly active platform consumers jumped 12% to 137 million.
Adjusted EBITDA in the second quarter surged more than 100% to $916 million compared with adjusted EBITDA of $364 million in the year-ago period.
Gross bookings from Mobility improved 25% to $16,728 million. Gross bookings from Delivery augmented 12% to $15,595 million. Gross bookings from Freight came in at $1,278 million in the second quarter, down 30% from the year-ago quarter. Total gross bookings ascended 16% to $33,601 million.
Uber exited the second quarter with cash and cash equivalents of $4,995 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 $9,255 million compared with $9,265 million at December 2022-end.
Operating cash flow came in at $1,190 million compared with $439 million in the year-ago quarter. The free cash flow was $1,140 million.
Q3 Guidance
For the third quarter of 2023, Uber expects gross bookings of $34 billion-$35 billion. The adjusted EBITDA is estimated to be $975 million to $1.025 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 181.63% due to these changes.
VGM Scores
At this time, Uber has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 C. 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. It comes with little surprise Uber has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Uber belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG - Free Report) , has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Alphabet Inc. reported revenues of $62.07 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.44 for the same period compares with $1.21 a year ago.
Alphabet Inc. is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +36.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of B.