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Uber Technologies: Q4 earnings preview


MongiIG

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Uber Technologies expected to post a loss per share in Q4 2021, although the groups mobility operations move closer to pre-Covid-19 pandemic levels.

UberSource: Bloomberg
 
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 01 February 2022 

When is Uber Technologies earnings date?

Uber Technologies, the American mobility service provider with operations in over 900 metropolitan areas worldwide, is scheduled to release its fourth quarter (Q4) earnings for 2021 on Monday 9 February 2022.

 

Uber Q4 earnings preview, what does ‘The Street’ expect?

The Uber Technologies business has had a particularly tough time since the onset of the Covid-19 pandemic. Food delivery initiatives have scaled through acquisition and circumstance to support the business, although the hail taxi side mobility service (its core operation) has suffered.

The group is starting to see demand pick up as the economy unlocks. December 2021 was noted as a particularly strong month by group chief executive officer (CEO) Dara Khosrowshahi, although the group continues to operate below pre-Covid-19 pandemic levels.

Maintaining driver capacity through incentivization has added to the groups cost base. This is furthered by UK and USA minimum wage and benefit requirements for contractors.

In terms of guidance Uber has suggested the following in terms of its upcoming Q4 2021 results:

A consensus of estimates from Refinitiv arrives at the following expectations for the Q4 2021 Uber results:

How to trade the Uber results

A Refinitiv poll of 44 analysts maintain a long-term average rating of buy for Uber (as of 1 February 2022), with 19 of these analysts recommending a strong buy, 18 recommending a buy, six hold, one sell and zero with a strong sell recommendation on the stock.

 

Uber broker ratingsSource: Refinitiv

 

92% of IG clients with open positions on Uber (as of 1 February 2022) expect the share price to rise in the near term, while 8% of IG clients with open positions on the company expect the price to fall.

Uber client sentimentSource: IG

Uber results: technical analysis

Uber chartSource: IG

 

The share price of Uber after correcting along with the tech sector this year, looks to have found near-term support around the 35.05 level.

The price now looks to have formed a bullish price reversal off this level and from oversold territory. 40.20 becomes the initial resistance target from the move. A break above this level (confirmed with a close) suggests 42.25 to be a further resistance target. Traders who are long might consider sing a close below the 35.05 support level as a stop loss indication for the trade.

Summary

 

  • Uber reports Q4 2021 results on 9 February 2022
  • The group has a broad range for Adjusted EBITDA of $25 million to $75 million over the reporting period
  • The groups cost base has increased over the year due to regulatory hurdles and increased driver incentives
  • A loss per share of $0.33 is expected for the quarter
  • The average broker rating for the stock is ‘buy’
  • The majority of IG Clients with open positions on Uber expect the price to rise
  • In the short term we have seen a rebound for the stock from oversold territory

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