Ride-hailing giant Uber (NYSE:UBER) is set to announce its quarterly earnings tomorrow, following a previous quarter that saw $9.2 billion in revenue. Despite falling 1.2% short of analyst expectations, the company reported a 14.3% year-on-year (YoY) increase. This growth was supported by a robust user base expansion, reaching 137 million users, marking a 12.3% YoY increase.
The company's performance also demonstrated solid free cash flow and positive profit guidance for the next quarter. However, the market has shown a bearish sentiment towards Uber, as evidenced by five downward revisions of the company's revenue estimates in the past month. Despite this sentiment, analysts predict a YoY revenue growth of 14.3% to $9.5 billion this quarter and adjusted earnings of $0.31 per share.
In comparison to its peers in the consumer internet segment, Booking (NASDAQ:BKNG) and Airbnb reported Q3 top-line growth of 21.3% and 17.8% YoY, respectively, surpassing analyst estimates. Despite their performance, both companies experienced a drop in share prices by 3.8% and 3.4%. The overall sentiment in the consumer internet segment has been positive with an average stock increase of 2.4% over the past month.
Outperforming this trend, Uber's stock has risen by 5.6%, heading into earnings with an analyst price target of $57.8 against its current share price of $48.01. With its upcoming earnings announcement, the market will be closely watching Uber's performance and how it aligns with these predictions.
InvestingPro Insights
Uber's financial data, as provided by InvestingPro, offers more nuance to the company's performance and future prospects. The company's market capitalization stands at $97.58 billion, and while it currently shows a negative P/E ratio of -256.42, analysts predict a significant improvement in the near future, with an adjusted P/E ratio of -68.77 expected by Q2 2023.
InvestingPro's real-time data also highlights an impressive revenue growth, with a 37.0% increase over the last twelve months as of Q2 2023, and a quarterly revenue growth of 14.33% in Q2 2023. However, it's worth noting that Uber's revenue growth has been slowing down recently.
InvestingPro Tips suggest that despite not being profitable over the last twelve months, Uber is expected to see net income growth this year. This aligns with the company's positive profit guidance for the next quarter. Moreover, Uber has seen a significant return over the last week and a high return over the last year, indicating a potential for future gains.
In conclusion, while Uber operates with a moderate level of debt and does not pay dividends to shareholders, it remains a prominent player in the Ground Transportation industry. For more in-depth analysis and additional tips, consider exploring InvestingPro's suite of tools and resources.
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