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Unlocking Uber (UBER) International Revenues: Trends, Surprises, and Prospects
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Have you evaluated the performance of Uber Technologies' (UBER - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this ride-hailing company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Upon examining UBER's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter stood at $10.7 billion, increasing 15.9% year over year. Now, let's delve into UBER's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at UBER's Revenue Streams Abroad
During the quarter, Latin America contributed $679 million in revenue, making up 6.4% of the total revenue. When compared to the consensus estimate of $751.05 million, this meant a surprise of -9.59%. Looking back, Latin America contributed $710 million, or 7%, in the previous quarter, and $627 million, or 6.8%, in the same quarter of the previous year.
Europe, Middle East and Africa accounted for 27.9% of the company's total revenue during the quarter, translating to $2.99 billion. Revenues from this region represented a surprise of +4.56%, with Wall Street analysts collectively expecting $2.86 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $2.76 billion (27.2%) and $2.41 billion (26.1%) to the total revenue, respectively.
Asia Pacific generated $1.21 billion in revenues for the company in the last quarter, constituting 11.3% of the total. This represented a surprise of -14.5% compared to the $1.41 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $1.19 billion (11.8%), and in the year-ago quarter, it contributed $1.06 billion (11.5%) to the total revenue.
Prospective Revenues in International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Uber will report a total revenue of $11 billion, which reflects an increase of 18.4% from the same quarter in the previous year. The revenue contributions are expected to be 6.6% from Latin America ($731.21 million), 27.1% from Europe, Middle East and Africa ($2.98 billion) and 13.6% from Asia Pacific ($1.49 billion).
Analysts expect the company to report a total annual revenue of $43.42 billion for the full year, marking an increase of 16.5% compared to last year. The expected revenue contributions from Latin America, Europe, Middle East and Africa and Asia Pacific are projected to be 6.9% ($3 billion), 27.3% ($11.86 billion) and 13.3% ($5.76 billion) of the total revenue, in that order.
Wrapping Up
Uber's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Image: Bigstock
Unlocking Uber (UBER) International Revenues: Trends, Surprises, and Prospects
Have you evaluated the performance of Uber Technologies' (UBER - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this ride-hailing company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Upon examining UBER's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter stood at $10.7 billion, increasing 15.9% year over year. Now, let's delve into UBER's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at UBER's Revenue Streams Abroad
During the quarter, Latin America contributed $679 million in revenue, making up 6.4% of the total revenue. When compared to the consensus estimate of $751.05 million, this meant a surprise of -9.59%. Looking back, Latin America contributed $710 million, or 7%, in the previous quarter, and $627 million, or 6.8%, in the same quarter of the previous year.
Europe, Middle East and Africa accounted for 27.9% of the company's total revenue during the quarter, translating to $2.99 billion. Revenues from this region represented a surprise of +4.56%, with Wall Street analysts collectively expecting $2.86 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $2.76 billion (27.2%) and $2.41 billion (26.1%) to the total revenue, respectively.
Asia Pacific generated $1.21 billion in revenues for the company in the last quarter, constituting 11.3% of the total. This represented a surprise of -14.5% compared to the $1.41 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $1.19 billion (11.8%), and in the year-ago quarter, it contributed $1.06 billion (11.5%) to the total revenue.
Prospective Revenues in International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Uber will report a total revenue of $11 billion, which reflects an increase of 18.4% from the same quarter in the previous year. The revenue contributions are expected to be 6.6% from Latin America ($731.21 million), 27.1% from Europe, Middle East and Africa ($2.98 billion) and 13.6% from Asia Pacific ($1.49 billion).Analysts expect the company to report a total annual revenue of $43.42 billion for the full year, marking an increase of 16.5% compared to last year. The expected revenue contributions from Latin America, Europe, Middle East and Africa and Asia Pacific are projected to be 6.9% ($3 billion), 27.3% ($11.86 billion) and 13.3% ($5.76 billion) of the total revenue, in that order.
Wrapping Up
Uber's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Uber, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Uber's Recent Stock Market Performance