:max_bytes(150000):strip_icc()/GettyImages-2165925400-c6cec746407640acab63fb7c69111f57.jpg "Uber Bull Calls Grow Ahead of Earnings After Tesla’s Robotaxi Event Underwhelmed")
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Key Takeaways
- Uber reports earnings Thursday morning, with analysts expecting a substantial rise in profits and revenue from the same time last year.
- Analysts are largely bullish on Uber after Tesla’s robotaxi event underwhelmed, easing some concerns about competition in the ridesharing space.
- Jefferies called Tesla’s event a “best-case outcome” for Uber, as analysts left the event with questions about the timeline of the robotaxi rollout.
Uber Technologies (UBER) will report earnings for the third quarter before the opening bell on Thursday, with the ridesharing giant expected to report a substantial rise in profits and revenue from the same time last year.
Uber is expected to report revenue just shy of $11 billion, nearly 20% above last year’s $9.29 billion, according to estimates compiled by Visible Alpha. Net Income is expected to roughly quadruple to $897.96 million, up from $221 million.
Analysts are overwhelmingly bullish on Uber stock, with all 27 analysts tracked by Visible Alpha rating it as a “buy,” with an average price target of $91.12, about 14% above Tuesday’s intraday price of $79.55. Several analysts reiterated their bullish stances on Uber following Tesla’s (TSLA) robotaxi unveiling earlier this month, with lack of details on Tesla’s plans leading Jefferies analysts to call the event a “best-case outcome” for Uber.
| Analyst Estimates for Q3 2024 | Q2 2024 | Q3 2023 | |
| Revenue | $10.98 billion | $10.7 billion | $9.29 billion |
| Earnings Per Share | 42 cents | 47 cents | 10 cents |
| Net Income | $897.96 million | $1.02 billion | $221 million |
Key Metric: Revenue Growth From New Features
Bank of America analysts said Uber’s revenue growth in the quarter should be “aided” by new products and features like taxis and new partnerships for Uber Eats with Costco (COST). They also said the company appears confident features like autonomous vehicles (AVs) and increased availability of ride-reserving could boost revenue in 2025.
Business Spotlight: Autonomous Partnerships as Tesla Robotaxi Event Falls Flat
Uber has announced a number of partnerships with AV companies like Waymo over the last several months, with the partnerships and Tesla’s lackluster robotaxi event improving analyst outlooks on Uber. Bank of America analysts said they see “limited competitive threats” to Uber from Tesla’s AVs in the near term, as Tesla CEO Elon Musk offered few specifics about how the company’s AV ecosystem will work when they are eventually on the roads.
Jefferies analysts said Uber could be “uniquely well-positioned” to grow its partnerships with AV companies, as Uber’s ecosystem of users gives the companies a platform to rent their vehicles without building and managing their own rental service or app.
Uber shares have gained close to 30% since the start of the year, though down from record levels reached in the days following Tesla’s robotaxi event.