close
close
Uber (NYSE:UBER) earnings preview: Here’s what to expect

Uber (NYSE:UBER) earnings preview: Here’s what to expect

Uber Technologies (UBER) rose in pre-market trading today ahead of the company’s third-quarter earnings report, scheduled for October 31, 2024. Analysts expect earnings per share to come in at $0.37 on revenue of $10.98 billion . This represents a decline of 21.27% and an increase of 2.61% year-over-year, respectively, according to TipRanks data.

While this expected drop in earnings per share could create negative momentum, Uber has had an excellent year of trading, up 80%. If the company can show revenue growth, UBER stock should be able to shake off any negative momentum that could cause earnings per share.

Over the past eight quarters, Uber has missed earnings estimates four times. However, the company has only missed revenue estimates twice during that same period.

Web traffic growth has increased

Uber’s website traffic data also points to strong results for the company in the upcoming third quarter. It should be noted that investors can use TipRanks’ Website Traffic tool to gain insight into a company’s upcoming earnings report. The tool provides information on how a company’s website domain has performed over a specific time frame.

For UBER, TipRanks’ Website Traffic Chart shows that traffic increased both sequentially and year-over-year in the fourth quarter. According to the tool, visits to apple.com increased 0.34% year-over-year and 3.29% sequentially. This visit growth may be modest, but it does indicate that demand for Uber’s services is still increasing.

Bulls Say, Bears Say Tool: Key Takeaways

According to TipRanks’ Bulls Say, Bears Say tool, bulls have praised Uber for its foray into autonomous vehicles through partnerships with Waymo and General Motors (GM) Cruise and highlighted the company’s continued strength in the rideshare market. Conversely, bears argued that companies like Waymo pose competition to Uber in markets like California. However, there are more bullish arguments than bearish.

What do options traders expect from Uber?

Using TipRanks’ Options tool, we can see what option traders expect to see immediately after the stock’s earnings report. The expected earnings movement is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry: the Options tool does this for you.

Currently, it indicates that options traders expect a move of 9.18% in either direction.

Is Uber Stock Buy, Sell, or Hold?

As for Wall Street, analysts have a strong buy consensus rating on UBER stock, based on 30 buys, one hold, and zero sells in the last three months, as shown in the chart below. After an 83% rally in the stock price over the past year, the average UBER price target of $89.31 per share implies an upside potential of 11.95%.

See more UBER analyst ratings