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UBER to Post Q4 Earnings: Will Mobility Weakness Mar Results?

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Zacks Equity Research
·3 min read
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Uber Technologies UBER is scheduled to report fourth-quarter 2020 earnings numbers on Feb 10, after market close.

Let’s take a look at the factors that are expected to have influenced the company’s fourth-quarter performance.

Uber’s fourth-quarter performance is expected to have been affected by weakness in the Mobility business due to low ride volumes, thanks to coronavirus confining most people to their homes. The Zacks Consensus Estimate for mobility revenues in the fourth quarter suggests a 44.1% drop from the year-ago reported number. The same for gross bookings hints at a 44.5% decline from the fourth-quarter 2019 reported figure.

However, the adversity is likely to have been partly offset by higher delivery revenues. With order volumes from homebound customers surging, the company’s Delivery business is witnessing a boom. The Zacks Consensus Estimate for delivery revenues in the fourth quarter indicates a more than 100% jump from the year-ago reported number. The same for gross bookings also implies a more than 100% rise from that reported in the fourth quarter of 2019.

Additionally, reduced expenses, thanks to Uber’s cost-cutting measures, are expected to have narrowed adjusted EBITDA losses in the quarter, as has been the case over the past few quarters.

Uber Technologies, Inc. Price and EPS Surprise

Uber Technologies, Inc. Price and EPS Surprise
Uber Technologies, Inc. Price and EPS Surprise

Uber Technologies, Inc. price-eps-surprise | Uber Technologies, Inc. Quote

What the Zacks Model Unveils

Our proven Zacks model does not conclusively predict a beat for Uber this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Uber has an Earnings ESP of -6.35% as the Most Accurate Estimate is pegged at a loss of 57 cents, wider than the Zacks Consensus Estimate of a loss of 53 cents.

Zacks Rank: Uber carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of Q3 Earnings

In the last-reported quarter, Uber incurred a loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 60 cents. However, the loss narrowed by 8.8% year over year. Total revenues of $3,129 million missed the Zacks Consensus Estimate of $3,143.7 million. The top line dropped approximately 18% year over year due to coronavirus-led weakness in the ride-hailing segment.

Stocks to Consider

Investors interested in the broader Computer and Technology sector may consider Akamai Technologies, Inc. AKAM, Arista Networks, Inc. ANET and Dropbox, Inc. DBX,` as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Akamai Technologies has an earnings ESP of +2.35% and a Zacks Rank #3. The company will announce fourth-quarter 2020 financial numbers on Feb 9.

Arista Networks has an earnings ESP of +0.76% and a Zacks Rank of 3. The company is scheduled to release fourth-quarter 2020 results on Feb 18.

Dropbox has an earnings ESP of +3.45% and a Zacks Rank #3. The company is set to release fourth-quarter 2020 earnings numbers on Feb 18.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report

Dropbox, Inc. (DBX) : Free Stock Analysis Report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

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