Uber Q3 Earnings Preview: Will Earnings Beat Expectations?
Nov 3, 2023
Uber Technologies (UBER) is set to report third quarter fiscal earnings on Tuesday, Nov. 7, before the opening bell. The rideshare company will hold a conference call to discuss the result at 8 a.m. Eastern Time (ET), according to a company press release.
Uber stock rose about 3% on Friday through mid-day trading as the broader market rallied on the latest U.S. jobs report, which saw rate traders cut bets for further hikes from the Federal Reserve.
The stock was on track to record a weekly gain of more than 16% on Friday, marking what could be the biggest single-week percentage gain since May. Still, Uber remains below its yearly high of $49.49 set in July.
Analysts have grown increasingly bullish on the stock over the past several weeks, with some upping their price targets to $60 or higher. Growth from the company’s advertising business and vertical business ventures, including grocery deliveries, is seen as a key profit driver.
Cost discipline is also something that is expected to continue impressing investors. The threat of rising interest rates has pressured companies across industries to tighten down on spending. Uber’s efforts should help to propel the company’s operating income and cash flows.
Uber is expected to report earnings per share (EPS) of $0.07 on $9.55 billion in revenue. That would compare to EPS of -$0.18 in Q3’2022. Currently, 41 analysts have a buy rating on the stock, five have an overweight rating, and two have a hold rating.
Uber’s main competitor, Lyft (LYFT), will report earnings the day after, on Wednesday, Nov. 8.
Uber is trading with an implied volatility rank (IVR) of 49.1 on Friday, and the November 10 expiry shows an expected move of +/- 3.53 points.
For those with a neutral to bearish stance on earnings, selling a call spread around 50, which is right above the yearly high, offers an opportunity to gain some short delta and take advantage of the likely drain in volatility.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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