Uber Technologies (NYSE:UBER) Releases Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Uber beat quarterly estimates: Earnings per share were $0.88 versus $0.86 expected, while revenue of $14.77 billion topped the $14.66 billion consensus and rose 9.6% year over year.
• Growth remained strong in bookings and Delivery: Gross bookings rose more than 20% for the fifth consecutive quarter, and Delivery bookings increased 23%; grocery and retail reached a $15 billion annualized run rate, up 40% year over year.
• Operating and outlook risks persist: Driver shortages, higher fuel costs, and other pressures weighed on Mobility, while the company’s profit outlook fell short of analyst expectations and increased driver incentives may raise costs or rider prices.

Uber Technologies (NYSE:UBER - Get Free Report) released its earnings results on Wednesday. The ride-sharing company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.02, FiscalAI reports. Uber Technologies had a return on equity of 43.36% and a net margin of 17.34%. The company had revenue of $14.77 billion during the quarter, compared to analyst estimates of $14.66 billion. During the same quarter in the previous year, the company posted $3.11 EPS. Uber Technologies's revenue for the quarter was up 9.6% on a year-over-year basis.

Here are the key takeaways from Uber Technologies' conference call:

• Uber reported its fifth consecutive quarter of 20%+ gross bookings growth, with 215 million monthly active platform consumers, non-GAAP EPS up 35%, and record trailing 12-month free cash flow of $10.4 billion.
• Mobility growth came in below expectations as driver supply lagged demand in several international markets, with fuel costs and immigration trends contributing. Uber is making targeted supply investments and said supply hours growth improved in October, though seasonal constraints and possible pressure on rider prices remain considerations.
• Delivery gross bookings grew 23%, with management citing accelerating organic growth, stronger merchant selection, and membership engagement. Grocery and retail reached a $15 billion run rate, up 40% year over year.
• Uber expects about 700 fully driverless vehicles on its network by year-end and more than 2,000 by the end of 2027, while targeting tens of thousands in 2028 and beyond. Management cited a 30% utilization advantage on its network, but said scaling will require proving the economics and securing third-party financing.
• AI-agent activity remains very small: Uber reported about 500 Uber Eats orders and four rides from agents during a recent high-volume week. The company is developing its own AI features while exploring third-party channels, and says it is negotiating terms with AI providers.

Uber Technologies Trading Up 6.5%

NYSE:UBER traded up $4.34 during trading hours on Wednesday, hitting $70.94. The company had a trading volume of 21,134,865 shares, compared to its average volume of 18,923,787. The company has a market capitalization of $144.90 billion, a PE ratio of 15.59, a price-to-earnings-growth ratio of 6.38 and a beta of 1.33. The stock has a 50-day moving average price of $70.71 and a 200 day moving average price of $73.25. Uber Technologies has a 52 week low of $64.04 and a 52 week high of $95.44. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.84 and a quick ratio of 0.84.

Insider Transactions at Uber Technologies

In related news, insider Jill Hazelbaker sold 28,170 shares of the business's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $71.31, for a total transaction of $2,008,802.70. Following the sale, the insider owned 149,525 shares of the company's stock, valued at $10,662,627.75. The trade was a 15.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Andrew Macdonald bought 70,000 shares of the stock in a transaction dated Friday, September 4th. The shares were acquired at an average price of $75.83 per share, with a total value of $5,308,100.00. Following the completion of the acquisition, the insider directly owned 426,320 shares of the company's stock, valued at approximately $32,327,845.60. The trade was a 19.65% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 3.81% of the company's stock.

Analysts Set New Price Targets

UBER has been the subject of several recent research reports. Citizens Jmp reiterated a "market outperform" rating and issued a $100.00 price objective on shares of Uber Technologies in a research report on Wednesday, October 7th. Wedbush restated an "outperform" rating and issued a $91.00 target price on shares of Uber Technologies in a report on Tuesday, September 8th. Arete Research downgraded shares of Uber Technologies from a "buy" rating to a "neutral" rating and set a $74.00 target price on the stock. in a research note on Thursday, September 10th. Jefferies Financial Group upped their price target on shares of Uber Technologies from $100.00 to $110.00 and gave the company a "buy" rating in a report on Monday, August 10th. Finally, Weiss Ratings cut shares of Uber Technologies from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, October 28th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Uber Technologies presently has an average rating of "Moderate Buy" and an average target price of $102.59.

Key Uber Technologies News

Here are the key news stories impacting Uber Technologies this week:

• Positive Sentiment: Gross Bookings grew 20% for the fifth consecutive quarter. Revenue was $14.77 billion, up 9.6% year over year and slightly ahead of estimates; adjusted EPS of $0.88 also topped consensus. These results point to resilient demand and improving profitability. Uber Q3 results
• Positive Sentiment: Uber is expanding grocery delivery through a Key Food partnership covering more than 300 stores in the Northeast and Florida, adding reach to its Delivery business. Key Food partnership
• Neutral Sentiment: Management is pushing ahead with autonomous vehicles, targeting 700 fully driverless vehicles by year-end and more than 2,000 by 2027. The initiative could help address driver shortages over time, but requires investment and faces execution hurdles. Autonomous vehicle targets
• Negative Sentiment: The profit outlook disappointed: Q4 and full-year guidance fell short of lofty analyst expectations. Also, while adjusted EPS beat estimates, reported GAAP EPS of $0.25 was below the cited $0.94 consensus, making the headline earnings picture mixed. Profit forecast and operating headwinds
• Negative Sentiment: Driver shortages abroad, higher fuel costs, and Middle East tensions weighed on mobility performance and the holiday outlook. Uber is spending more on driver incentives to increase supply, which could pressure costs or lead to higher rider prices. Driver incentives and possible price increases

Uber Technologies Company Profile

Uber Technologies, Inc is a technology company that connects consumers with independent drivers, couriers, merchants and transportation providers through its digital platform. Its Mobility business offers ridesharing and other transportation services, including taxi and vehicle-hire options in select markets. The company also provides business travel and transportation management tools for organizations.

Uber's Delivery segment operates Uber Eats, which enables customers to order meals, groceries and other goods from participating restaurants, retailers and merchants.

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