Ride sharing and on demand delivery service Uber (NYSE: UBER) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.
Uber beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $11.19 billion, up 20.4% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates. It reported 161 million users, up 13.4% year on year.
Is Uber a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Uber’s revenue to grow 18.3% year on year to $11.76 billion, improving from the 15.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Uber has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Uber’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 20.6%, beating analysts’ expectations by 2.9%, and Coursera reported revenues up 6.1%, topping estimates by 1.6%. Meta traded up 1.5% following the results while Coursera was down 19.5%.
Read our full analysis of Meta’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.1% on average over the last month. Uber is up 2.3% during the same time and is heading into earnings with an average analyst price target of $88.63 (compared to the current share price of $67.77).
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