UBER Earnings Review: A Mixed Outlook Ahead of Reports

In this analysis, we explore UBER's upcoming earnings and performance indicators. With declining EPS estimates and bullish revenue expectations, investors are weighing their options carefully before the release on Feb. 5.

Date: 01-02-2025

AI Rating: 5

Earnings Per Share (EPS): The Zacks Consensus Estimate for UBER's fourth-quarter EPS stands at 50 cents per share. However, it’s important to note that this estimate has seen a decline of 9.1% over the past 60 days, and is also projected to reflect a significant year-over-year decline of 24.2%. On a positive note, the full-year EPS estimate for 2025 suggests a 28.8% year-over-year expansion, indicating potential for recovery.

Revenue Growth: The Zacks Consensus Estimate for UBER's quarterly revenues is pegged at $11.7 billion, reflecting an 18.2% increase when compared to the same quarter last year. For the full year of 2025, revenues are anticipated to reach $50.7 billion, indicating a year-over-year increase of 15.9%. This suggests a strong revenue growth trajectory despite short-term challenges.

Analysis of Company Performance: While UBER has been performing relatively well regarding revenue growth and rideshare bookings, concerns arise due to the projected decline in EPS and high debt levels. The expected slowdown in gross bookings due to weakening demand from the ride-hailing market, exacerbated by inflation and the competitive landscape, hints at potential challenges ahead. Moreover, optimizing freight revenues in a challenging market remains another hurdle.

Despite these concerns, UBER's trading valuation appears favorable, with a forward sales multiple of 2.74, noticeably below its historical median and industry average. This valuation may attract investors seeking undervalued stocks, albeit the current market conditions suggest caution.

Overall Impression: The outlook for UBER's stock is mixed as it faces hurdles due to decreasing EPS estimates relative to expectations, though revenue growth remains promising. The anticipated earnings report on Feb. 5 will be crucial in determining how the market will react to these indicators.

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