#Uber #Bull #Calls #Grow #Ahead #Earnings #Teslas #Robotaxi #Event #Underwhelmed
Key takeaways
- Uber reported earnings on Thursday morning, with analysts expecting a significant rise in profits and revenues compared to the same time last year.
- Analysts are largely bullish on Uber after the Tesla robotaxi event failed, alleviating some concerns about competition in the ride-sharing space.
- Jefferies called the Tesla event the “best outcome” for Uber, with analysts leaving the event with questions about the timeline for the robots’ rollout.
Uber Technologies (UBER) will report its third-quarter earnings before the opening bell on Thursday, as the ride-sharing giant is expected to report a significant increase in earnings and revenue compared to the same time last year.
Uber is expected to report revenue of less than $11 billion, nearly 20% higher than last year’s $9.29 billion, according to estimates compiled by Visible Alpha. Net income is expected to nearly quadruple to $897.96 million, from $221 million.
Analysts are overwhelmingly bullish on Uber shares, with all 27 analysts tracked by Visible Alpha rating it a “buy,” with an average price target of $91.12, about 14% above Tuesday’s price of $79.55. Several analysts reiterated their bullish stances on Uber following Tesla’s (TSLA) taxi unveiling earlier this month, with a lack of details on Tesla’s plans leading Jefferies analysts to describe the event as the “best outcome” for Uber.
| Analysts’ estimates for the third quarter of 2024 | Second quarter 2024 | Third quarter 2023 | |
| profit | $10.98 billion | $10.7 billion | $9.29 billion |
| Earnings per share | 42 cents | 47 cents | 10 cents |
| Net income | $897.96 million | $1.02 billion | $221 million |
Key metric: Revenue growth from new features
Bank of America analysts said Uber’s revenue growth this quarter should be “fueled” by new products and features like taxis and Uber Eats’ new partnerships with Costco (COST). They also said the company appears confident that features such as autonomous vehicles (AVs) and increased ride booking availability can boost revenues in 2025.
Business Spotlight: Autonomous Partnerships with Tesla Robotaxi Event Failure
Uber has announced a number of partnerships with AV companies like Waymo over the past few months, with the partnerships and Tesla’s lackluster Robotaxi event improving analysts’ expectations for Uber. Bank of America analysts said they see “limited competitive threats” to Uber from Tesla’s self-driving vehicles in the near term, as Tesla CEO Elon Musk provided few details on how the company’s autonomous vehicle ecosystem will work when they are eventually on the roads.
Jefferies analysts said Uber could be “uniquely well-positioned” to grow its partnerships with AV companies, as Uber’s user ecosystem gives companies a platform to rent their cars without creating and managing their own rental service or app.
Uber shares have risen nearly 30% since the beginning of the year, although they are below record levels reached in the days following the Tesla robotaxi event.
#Uber #Bull #Calls #Grow #Ahead #Earnings #Teslas #Robotaxi #Event #Underwhelmed
