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Uber Stock Erupts on Strong Beat, Analysts Expect Positive Market Reaction

Stock Markets Aug 02, 2022 09:22AM ET
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© Reuters Uber Stock Erupts on Strong Beat, Analysts Expect Positive Market Reaction

By Senad Karaahmetovic

Shares of Uber (NYSE:UBER) are up almost 13% after the ride-sharing and delivery company delivered very strong results.

Uber said it recorded revenue of $8.07 billion to easily beat the consensus of $7.39 billion with gross bookings rising 33% and coming ahead of expectations. Uber reported an adjusted EBITDA of $364 million to crush the average analyst estimate of $265.9 million.

The company attributed a loss per share of $1.33 to “a $1.7 billion net headwind (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized losses related to the revaluation of Uber’s Aurora, Grab, and Zomato stakes.”

“We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum,” said Nelson Chai, Uber’s CFO.

“This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximizing long-term returns for shareholders.”

Additionally, Uber said it is confident it will be able to deliver 2024 gross bookings and adjusted EBITDA goals.

For the ongoing quarter, Uber sees an adjusted EBITDA between $440 million to $470 million, much better than the consensus of $391.6 million.

A Needham & Company analyst stated:

“Delivery bookings were below expectations in 2Q22, likely driven by weakness outside the U.S., which could be a reason for the lower than expected bookings guide. Given the stronger than expected adj. EBITDA results and guide, we expect shares to react favorable as we suspect current value levels express market skepticism on reaching '23 and '24 consensus expectations.”

Similarly, a Goldman Sachs analyst reflected positively on Uber’s earnings report.

“We expect investors to have a positive reaction to Uber’s Q2 ’22 earnings report, as most metrics (in terms of both its reported Q2 metrics and forward commentary) were solid vs expectations,” the analyst said.

Uber Stock Erupts on Strong Beat, Analysts Expect Positive Market Reaction
 

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