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Uber (UBER) Up 9.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Uber due for a pullback? 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.
UBER Q2 Earnings Tops Estimates
Uberreported second-quarter 2024 earnings of 47 cents per share, which outpaced the Zacks Consensus Estimate of 31 cents and improved more than 100% on a year-over-year basis. Total revenues of $10.700 billion beat the Zacks Consensus Estimate of $10.558 billion. The top line jumped 16% year over year on a reported basis and 17% on a constant currency basis.
In the reported quarter, the majority (57.3%) of the company’s revenues came from Mobility. Revenues from this segment jumped 25% year over year to $6.134 billion owing to an increase in Mobility gross bookings due to an increase in trip volumes.
Revenues from the Delivery segment increased 8% year over year to $3.293 billion owing to an increase in delivery gross bookings due to an increase in trip volumes.
Freight revenues of $1.273 billion, down 0.5% year over year, due to lower revenue per load and volume and the challenging freight market cycle.
Adjusted EBITDA in the second quarter surged 71% to $1.570 billion.
Gross bookings from Mobility improved 23% to $20.554 billion. Gross bookings from Delivery augmented 16% to $18.126 billion. Gross bookings from Freight came in at $1.272 million in the first quarter, down 0.5% from the year-ago quarter. Total gross bookings ascended 19% to $39.952 million.
Uber exited the second quarter with cash and cash equivalents of $4.497 billion compared with $5.019 billion at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $9.454 billion compared with $9.457 billion at prior quarter -end.
Operating cash flow came in at $1.820 billion in the reported quarter. The free cash flow was $1.721 billion.
Q3 Guidance
For the third quarter of 2024, Uber expects gross bookings in the range of of $40.25 billion to $41.75 billion, which reflects year over year growth of 18-23%.
The adjusted EBITDA is estimated to be $1.58 billion to $1.68 billion, which reflects year over year growth of 45% to 54%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.18% 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 C on the value side, putting it in the middle 20% 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.
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.
Performance of an Industry Player
Uber is part of the Zacks Internet - Services industry. Over the past month, DoorDash, Inc. (DASH - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended June 2024 more than a month ago.
DoorDash reported revenues of $2.63 billion in the last reported quarter, representing a year-over-year change of +23.3%. EPS of -$0.38 for the same period compares with -$0.44 a year ago.
For the current quarter, DoorDash is expected to post earnings of $0.19 per share, indicating a change of +200% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DoorDash. Also, the stock has a VGM Score of C.
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Uber (UBER) Up 9.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Uber Technologies (UBER - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Uber due for a pullback? 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.
UBER Q2 Earnings Tops Estimates
Uber reported second-quarter 2024 earnings of 47 cents per share, which outpaced the Zacks Consensus Estimate of 31 cents and improved more than 100% on a year-over-year basis. Total revenues of $10.700 billion beat the Zacks Consensus Estimate of $10.558 billion. The top line jumped 16% year over year on a reported basis and 17% on a constant currency basis.
In the reported quarter, the majority (57.3%) of the company’s revenues came from Mobility. Revenues from this segment jumped 25% year over year to $6.134 billion owing to an increase in Mobility gross bookings due to an increase in trip volumes.
Revenues from the Delivery segment increased 8% year over year to $3.293 billion owing to an increase in delivery gross bookings due to an increase in trip volumes.
Freight revenues of $1.273 billion, down 0.5% year over year, due to lower revenue per load and volume and the challenging freight market cycle.
Adjusted EBITDA in the second quarter surged 71% to $1.570 billion.
Gross bookings from Mobility improved 23% to $20.554 billion. Gross bookings from Delivery augmented 16% to $18.126 billion. Gross bookings from Freight came in at $1.272 million in the first quarter, down 0.5% from the year-ago quarter. Total gross bookings ascended 19% to $39.952 million.
Uber exited the second quarter with cash and cash equivalents of $4.497 billion compared with $5.019 billion at the end of prior quarter. Long-term debt, net of the current portion at the end of the reported quarter, was $9.454 billion compared with $9.457 billion at prior quarter -end.
Operating cash flow came in at $1.820 billion in the reported quarter. The free cash flow was $1.721 billion.
Q3 Guidance
For the third quarter of 2024, Uber expects gross bookings in the range of of $40.25 billion to $41.75 billion, which reflects year over year growth of 18-23%.
The adjusted EBITDA is estimated to be $1.58 billion to $1.68 billion, which reflects year over year growth of 45% to 54%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.18% 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 C on the value side, putting it in the middle 20% 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.
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.
Performance of an Industry Player
Uber is part of the Zacks Internet - Services industry. Over the past month, DoorDash, Inc. (DASH - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended June 2024 more than a month ago.
DoorDash reported revenues of $2.63 billion in the last reported quarter, representing a year-over-year change of +23.3%. EPS of -$0.38 for the same period compares with -$0.44 a year ago.
For the current quarter, DoorDash is expected to post earnings of $0.19 per share, indicating a change of +200% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DoorDash. Also, the stock has a VGM Score of C.