Uber Technologies is set to report its quarterly earnings soon, aiming to capitalize on a robust upward trajectory that has seen its stock surge nearly 65% this year. Investors will be keen to assess the strength of consumer demand and Uber’s advancements in the autonomous vehicle space.
After a challenging end to 2024, when Uber’s stock lagged behind the S&P 500, the company has managed to quell concerns regarding competition from robotaxis. In recent quarters, Uber has largely met or exceeded Wall Street’s growth expectations.
In its most recent earnings report, released in early August, Uber demonstrated stronger-than-expected performance, announcing a substantial $20 billion stock buyback plan. However, despite these positive developments, the stock experienced a decline post-report, as analysts attributed this to high expectations leading into the announcement.
### Key Metrics for Uber’s Q3 Earnings
For the quarter ending in September, analysts anticipate a 19% year-over-year increase in revenue, projecting it to reach $13.28 billion. Earnings per share are expected to drop 42% to 69 cents, due to a comparison against strong earnings from the previous year, which included a notable gain from unrealized equity investments. Adjusted EBITDA is expected to grow by 34%, reaching $2.27 billion.
The gross bookings metric, which reflects total spending across Uber’s rides and food delivery platforms, is projected to rise 19.5% year over year, hitting approximately $48.95 billion. Looking ahead, analysts estimate that Q4 gross bookings will further increase by 18%, reaching $52.1 billion, with adjusted EBITDA climbing to $2.47 billion.
### The Focus on Autonomous Vehicles
As with past earnings calls, updates on Uber’s robotaxi initiatives will be a key topic of interest. The company has partnered with over a dozen providers to integrate autonomous vehicles into its service, amid growing competition from Waymo, Google’s autonomous division. While Uber collaborates with Waymo in several cities, it faces challenges as Waymo continues to expand its own initiatives, even forming partnerships with competitors like Lyft.
Analysts, like UBS’s Stephen Ju, have expressed a more optimistic view of Uber’s ability to navigate threats from robotaxis, citing slower-than-anticipated progress in manufacturing and operational fleet expansion. Ju noted that while Waymo operates a substantial number of robotaxis, both Uber and Lyft maintain far larger driver networks, reinforcing their competitive edge.
Recently, Uber’s ambitious plans for a robotaxi fleet took a significant step forward with an announcement about launching a service using Lucid vehicles in the Bay Area in the coming year. The company revealed plans to invest hundreds of millions in both Lucid and Nuro, with intentions to deploy a significant fleet of Lucid EVs outfitted with Nuro’s technology over the next several years.
### Current Performance and Market Outlook
Currently, Uber’s stock is trading around $89.92, having experienced a 2.8% increase. This performance comes even as competitors like Waymo expand into new markets. Uber shares are currently forming a flat base pattern with a potential buy point at $101.99. The stock also boasts a strong composite rating, reflecting its overall performance across multiple metrics.
As Uber navigates this pivotal moment in its development, its ability to adapt and capitalize on emerging technologies will be critical to sustaining investor confidence and driving future growth.
