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San Francisco, California-based Uber Technologies, Inc. (UBER) operates a multi-sided marketplace that connects drivers with riders via its mobile app. Valued at a market cap of $196.3 billion, the company, in addition to mobility services, has expanded into food delivery, freight logistics, and autonomous vehicle technology. It is scheduled to announce its fiscal Q2 earnings for 2025 before the market opens on Wednesday, Aug. 6.
Before this event, analysts project this ride-hailing giant to report a profit of $0.62 per share, up 31.9% from $0.47 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $0.83 per share in the previous quarter topped the consensus estimates by a notable margin of 62.8%.
For the full year, analysts expect UBER to report EPS of $2.90, down 36.4% from $4.56 in fiscal 2024. Nonetheless, its EPS is expected to grow 21.7% year-over-year to $3.53 in fiscal 2026.
Shares of UBER have rallied 27.6% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 10.9% rise and the Technology Select Sector SPDR Fund’s (XLK) 10.1% return over the same time frame.
Shares of UBER dropped 2.5% on May 7, following its mixed Q1 earnings release. On the brighter side, the company delivered a profit of $0.83 per share, significantly up from a loss of $0.32 per share recorded in the year-ago quarter and 62.7% above the consensus estimates. UBER’s bottom line was supported by a robust 35.2% rise in its adjusted EBITDA, an 18% increase in trips, with even stronger user retention, and a $51 million net gain from the revaluation of its equity investments. However, on the other hand, its revenue advanced 13.8% year-over-year to $11.5 billion, but marginally fell short of analyst estimates primarily due to weaker performance in the freight segment. This top-line miss might have lowered investor confidence.
Wall Street analysts are highly optimistic about UBER’s stock, with a "Strong Buy" rating overall. Among 47 analysts covering the stock, 32 recommend "Strong Buy," five indicate "Moderate Buy," and 10 advise "Hold.” The mean price target for UBER is $99.88, implying an 8.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
