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Uber Set to Report Q3 earnings Amid Autonomous Vehicle Push and Strong Demand
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Investors are keenly focused on Uber’s upcoming third-quarter earnings report, scheduled for release before the market opens on Tuesday, november 6, with a conference call at 8:00 am ET. The report comes as the ride-sharing and delivery giant continues to navigate a dynamic landscape, marked by advancements in autonomous vehicle technology and sustained demand for its services.
Q3 Expectations and recent performance
Uber anticipates reporting gross bookings between $48.25 billion and $49.75 billion for Q3, representing a year-over-year increase of 17% to 21%.Adjusted EBITDA is projected to rise 30% to 36% year-over-year, landing between $2.19 billion and $2.29 billion. These projections follow a strong second quarter, where Uber exceeded expectations with EPS of 63 cents and revenue of $12.7 billion.
According to a company release, CEO Dara Khosrowshahi stated, “Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery.” however, he also acknowledged the company is “still only beginning to unlock the platform’s full potential,” particularly with its growing network of 20 autonomous partners globally.Current consensus estimates, based on Yahoo Finance data, forecast Q3 EPS of 69 cents and revenue of $13.26 billion.
Analyst Sentiment Remains Positive
Several firms have recently reiterated their positive outlook on Uber. Guggenheim initiated coverage last month with a Buy rating and a $140 price target, citing the company’s “industry-leading” network, technology, and brand equity. One analyst noted the ongoing debate surrounding autonomous vehicle adoption will continue to influence market sentiment,with both potential benefits and risks acknowledged.
UBS recently raised its price target on Uber to $124 from $117, maintaining a Buy rating. The firm highlighted the resilience of food delivery demand post-COVID, attributing it to increased convenience and sustained growth. However, UBS also cautioned that competitive pressures may intensify with Deliveroo gaining traction and Amazon expanding its same-day grocery delivery services.
Stifel also increased its price target to $124 from $116, acknowledging that recent headlines concerning autonomous vehicles had temporarily pressured the stock, but ultimately predicting “reasonable” Q3 results.
Driverless Future Takes Shape
Uber is accelerating its push into autonomous driving, planning to launch driverless rides in the San Francisco Bay Area next year. The company will utilize Lucid Gravity SUVs equipped with self-driving technology developed by Nuro, directly competing with Waymo’s existing robotaxi service. Bloomberg’s Natalie Lung reports that testing is already underway, marking a meaningful milestone in uber’s autonomous vehicle strategy.“
Delivery Buisness Poised for growth
Analysts are also highlighting the potential of Uber’s delivery business. Guggenheim believes the re-accelerating delivery segment is “relatively overlooked” by investors and is well-positioned for enduring double-digit growth. The continued demand for convenient delivery options, even as pandemic-related restrictions ease, suggests a strong future for this part of Uber’s business.
Investors can find additional insights into market sentiment surrounding Uber by exploring recent media buzz analysis from TipRanks [Click here to check out the recent Media Buzz Sentiment on
