Uber earnings preview: what’s the outlook heading into Q4 results?
We examine some of the key things investors need to know ahead of Uber’s fourth quarter earnings release.
Uber share price: a wild ride
When Uber first listed on the NYSE in May 2019, it traded for a little over US$40 per share. Yet for all of the company’s high flying ambitions, its stock struggled in the months after going public, dropping to a low of US$25.99 per share by November 2019.
Since then however, the stock has rebounded – leaning into a broader rally among global equities.
Mind you, the Uber Technologies (NYSE: UBER) share price now trades ~42% higher than those November-lows, with optimism around the stock looking to have improved.
Uber currently has a market capitalisation of US$63.10 billion.
Do you own Uber shares? You can hedge your downside risk by trading CFDs now.
When will Uber report its results?
Uber Technologies (UBER) is expected to report its latest, fourth quarter FY19 results on 6 February, after the market close.
What analysts are expecting from Q4
Though Uber’s share price has ran higher in recent months, analysts still expect the technology company to struggle with profitability in the FY19 fourth quarter.
In saying that, on the top-line, analysts are anticipating a slight improvement, with Uber expected to report Q4 revenues of US$3.699 billion. In Q3, Uber recorded revenues of US$3.533 billion.
Though analysts are expecting a revenue boost in Q4, earnings estimates look less favourable. Here, analysts are expecting negative earnings (EBITDA) of -US$717.17 million in Q4.
This represents a significant increase on Uber’s third quarter loss of -US$585 million.
As a consequence of this, fourth quarter earnings per share (EPS) estimates remain negative, pegged to come in at -0.605 per share – on an adjusted basis.
In Q3, Uber reported EPS figures of -0.445 per share – also on an adjusted basis.
The longer-term view
Though the Uber share price has struggled to find its footing since listing, the stock remains overwhelmingly liked by analysts, with 70.7% of analysts rating the stock a ‘buy’ and 29.3% rating the stock a ‘hold’, according to Bloomberg Data.
No analysts currently rate the stock a sell.
In addition to that, analysts appear to be expecting further upside from current price levels for the ride-sharing company. On average, Uber has a 12-month target share price of US$45.28 – which at current levels would imply potential upside of around 22.4%, according to Bloomberg Data.
Freedom Finance’s analyst Erlan Abdikarimov is by far the most bullish analyst on Uber’s prospects – hitting the stock with a ‘buy’ rating and a lofty price target of US$63.80 per share.
On the other end of the spectrum, Piper Sandler & Co is the most bearish. That firm currently has a ‘neutral’ rating and a 12-month price target of US$26.00 per share on Uber Technologies.
Ready to start hedging? Open an account with IG today to get started.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
