Ride hailing company, Uber (NYSE:UBER) announced its third quarter results with the company swinging to profit in Q3. The company announced earnings of $0.10 per share in Q3 as compared to a loss of $0.61 per share in the same period last year, above analysts’ consensus estimates of $0.07 per share.
Uber generated revenues of $9.3 billion in the third quarter, up by 10% year-over-year on a constant currency basis. but below analysts’ expectations of $9.54 billion. The company’s gross bookings (total dollar value of bookings) in Q3 went up by 21% year-over-year to $35.3 billion while Mobility gross bookings rose by 30% year-over-year to $17.9 billion.
Delivery gross bookings (dollar value of Uber’s food delivery business) jumped by 18% year-over-year to $16.1 billion. The company’s trips increased by 25% year-over-year during the third quarter to 2.4 billion.
Dara Khosrowshahi, Uber’s CEO commented, “Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25%. Uber’s core business is stronger than ever as we enter the busiest period of the year.”
Looking forward, management anticipates gross bookings in the range of $36.5 billion to $37.5 billion in the fourth quarter while adjusted EBITDA is likely to be between $1.18 billion and $1.24 billion.
What is the Fair Price for Uber Stock?
Analysts remain bullish about UBER stock with a Strong Buy consensus rating based on a unanimous 15 Buys. The average UBER price target of $59.50 implies an upside potential of 23.6% at current levels.
