Ride sharing and on-demand delivery platform Uber (NYSE: UBER) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Uber met analysts’ revenue expectations last quarter, reporting revenues of $14.37 billion, up 20.1% year on year. It was a mixed quarter for the company, with strong growth in its users. It reported 202 million users, up 18.1% year on year.
Is Uber a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Uber’s revenue to grow 15.4% year on year, improving from the 13.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Uber rarely misses Wall Street’s revenue estimates.
Looking at Uber’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Fiverr’s revenues decreased 1.6% year on year, beating analysts’ expectations by 1%, and Amazon reported revenues up 16.6%, topping estimates by 2.4%. Fiverr traded up 12.4% following the results while Amazon’s stock price was unchanged.
Read our full analysis of Fiverr’s results here and Amazon’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 11.1% on average over the last month. Uber is up 2.6% during the same time and is heading into earnings with an average analyst price target of $104.00 (compared to the current share price of $74.02).
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