What to Expect When Uber Reports After the Close

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Uber Technologies Inc. (NYSE: UBER) is scheduled to release its second-quarter results after the markets close on Thursday. The consensus estimates are calling for a net loss of $3.19 per share and $3.36 billion in revenue.

Note that Lyft Inc. (NASDAQ: LYFT) reported its most recent quarterly results on Wednesday. This ride-sharing firm said that it had a net loss of $2.23 per share and $867.26 million in revenue, compared with consensus estimates of a net loss of $1.58 per share and $809.27 million in revenue.

Canaccord Genuity has issued a Buy rating for Uber with a $55 price target, implying upside of roughly 41% from the most recent closing price of $39.05.

The firm expects Uber’s core ride-sharing business to sustain solid top-line momentum as the secular shift away from individual car ownership toward transportation as a service continues, and it sees ongoing upside to its volume estimates for riders and ride frequency.

Canaccord Genuity also sees potential for pricing expansion going forward, as referenced in its recently published monthly “Rideshare pricing tracker,” in which its proprietary data shows that both Uber X and Uber Pool prices rose modestly across the country through the second half of the second quarter. The price increases were driven in part by New York City, which experienced the highest price growth primarily due to the city’s new minimum wage law.

According to Canaccord Genuity:

The rideshare business should be top-of-mind, and we see constructive trends leading to about 18% Rides gross bookings growth. Investors will also likely be focused on Uber Eats about 18.5% of revenue) amidst a backdrop of increasing competition and consolidation in the food delivery space.

Excluding Thursday’s move, Uber shares had underperformed the broad markets, with its stock down about 4.5% since it came public. In the past month, the stock is down closer to 10%.

A few other analysts weighed in on Uber ahead of the results:

  • HSBC has a Hold rating with a $49 price target.
  • Needham has a Buy rating and a $52 price target.
  • Stifel’s Hold rating comes with a $50 price target.
  • Northcoast Research has a Neutral rating.
  • Evercore ISI rates it as Outperform with a $60 price target.
  • Raymond James has an Outperform rating with a $50 target.

Shares of Uber traded up about 5% at $41.83 on Thursday, in a 52-week range of $36.08 to $47.08. The consensus analyst price target is $52.10.

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