Uber (NYSE:UBER) will announce its Q4 financials on Wednesday, February 8. This ride-hailing and on-demand food and package delivery service provider will likely benefit from secular sector tailwinds. The reopening of cities, its global presence, and the recovery in travel are driving demand for its offerings and supporting its financials.
Uber achieved record mobility gross bookings in the previous quarter. Moreover, its adjusted EBITDA was at an all-time quarterly high. Furthermore, Uber has reduced its losses quarter-over-quarter in Q2 and Q3 of 2022.
As for Q4, analysts expect Uber’s losses to narrow down further in Q4 and improve sequentially. Analysts expect Uber to post a loss of $0.15 per share in Q4 compared to a loss of $0.61 per share in Q3.
Uber expects its gross bookings to increase by 23-27% in Q4 (on a constant currency basis). Meanwhile, it expects adjusted EBITDA to be in the range of $600 million to $630 million.
The ongoing improvement in its monthly active platform consumers, increase in trips, and higher gross bookings are likely to support Uber’s Q4 financials. However, pressure on consumer spending amid high inflation could hurt Uber’s delivery business.
Needham analyst Bernie McTernan sees Uber outperforming amid the favorable operating environment. The analyst expects Uber to benefit from “low wait times, solid demand and elevated pricing.” However, McTernan has reduced Uber’s delivery estimates.
What is Uber’s Stock Prediction?
Including McTernan, Uber stock has received 11 unanimous Buy recommendations ahead of Q4 earnings. UBER commands a Strong Buy consensus rating on TipRanks. Meanwhile, analysts’ average price target of $42.91 implies 26.58% upside potential.
Furthermore, hedge funds and insiders have accumulated Uber stock in the past quarter. Hedge funds bought 2.7M shares of Uber. Moreover, insiders added UBER stock worth $1.7M. Overall, Uber has an Outperform Smart Score of nine.
