Uber's Earnings Report: What Should Investors Expect?

Uber (NYSE:UBER), a ride-sharing and on-demand delivery platform, will announce its earnings results this Tuesday before the stock market closes. So, what can we expect?

Uber reported revenue of $12.65 billion last quarter, exceeding analysts' revenue expectations by 1.4% and showing a year-over-year increase of 18.2%. This quarter was satisfactory for the company; it also experienced strong growth in user numbers. It reached a total of 180 million users, growing 15.4% annually.

As earnings reports approach, should investors lean towards buying or selling Uber's stock?

For this quarter, analysts expect Uber's revenue to increase by 18.6% year-over-year to $13.27 billion. This indicates a slowdown compared to the 20.4% increase reported in the same quarter last year. Adjusted earnings per share are projected to be around $0.87.

Analysts tracking the company have generally reiterated their forecasts in the last 30 days, suggesting continued growth in revenue. However, Uber has missed Wall Street's revenue estimates twice in the last two years.

Looking at competitors in the consumer internet segment, some have reported Q3 results, providing clues about what we can expect. For example, Carvana showed an annual revenue increase of 54.5%, surpassing analyst expectations by 11.1%, while Coinbase also grew by 55.1%, outperforming predictions by 4.5%. After the results, Carvana lost 13.8% in value, while Coinbase saw a 4.4% increase.

The outlook for 2025 remains uncertain due to potential changes in trade policy and corporate tax discussions, which could affect business confidence and growth. Although consumer internet stocks continue to perform solidly in a challenging environment, this group has generally experienced an average decline of 3.5%. During the same period, Uber's shares also fell by 3.4%, and while analysts have an average price target of $108.88, the stock is currently trading at $96.68.

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