Uber Technologies (NYSE:UBER) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Uber Technologies, Inc. (NYSE:UBER) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of -$0.49/share on revenue of $3.182 billion. The consensus earnings per share (EPS) of -$0.49/share is based on a poll of 7 analysts and represents a decline in eps of -11.5% over the same quarter last year, when the company reported earnings of -$0.44/share.

The revenue forecast of $3.182 billion based on a poll of 23 analysts implies a year-over-year (YoY) decline in revenue of −16.5%. Last year the company reported $3.813 billion in revenue for the quarter.

Expected to report EPS of -$0.49/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $3,182.07 $3,813.00 −16.5%
EPS -$0.49 -$0.44 -11.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 6 tracked quarters, and missed expectations 1 quarters.

What are your expectations from Uber Technologies, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.72 -$0.65 9.9% Beat
Q1, 2020 -$0.70 -$1.40 -98.5% Missed
Q4, 2019 -$0.52 -$0.49 5.5% Beat
Q3, 2019 -$0.54 -$0.44 19.4% Beat
Q2, 2019 -$0.92 -$0.48 48.0% Beat
Q1, 2019 -$2.29 -$2.19 4.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $33.20 $32.90 −0.9% Decline
May 7, 2020 $27.82 $32.79 17.9% Increase
February 6, 2020 $36.81 $40.63 10.4% Increase
November 4, 2019 $31.37 $28.02 −10.7% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.42, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.42 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Uber Technologies, Inc. is currently trading at $33.48/share, down −2.0% for the day. The company is trading at approximately 80.0% of its 52-week high of $41.86/share. The company’s stock price is up 1.8% since the last earnings report and down −4.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 40.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:UBER Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −8.36 and a forward P/E multiple of −14.56.

Uber Technologies, Inc.’s current share price also implies a price-to-book (P/B) multiple of 6.10. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $33.48
P/E Ratio −8.4x
P/E Ratio (Fwd) −14.6x
PEG Ratio −0.1
Total Debt / Total Capital 13.6%
Levered Free Cash Flow -$4.884 billion
EV / EBITDA −11.9x

Finbox

Uber Technologies, Inc. is a large-cap stock with a market capitalization of $59.87 billion and a total enterprise value of $62.646 billion. The company operates in the Industrials sector and the Road & Rail industry.

Uber Technologies, Inc. develops and operates proprietary technology applications primarily in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services, as well as connect consumers with restaurants and food delivery service providers for meal preparation and delivery services. The company operates through five segments: Rides, Eats, Freight, Other Bets, and Advanced Technologies Group (ATG) and Other Technology Programs. The Rides segment offers products that connect consumers with rides drivers who provide rides in a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. It also provides Uber for Business, financial partnership services, and vehicle solutions offerings. The Eats segments offering enables consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. The Freight segment connects carriers with shippers on the company’s platform and enable carriers upfront, transparent pricing, and the ability to book a shipment. The Other Bets segment provides access to rides through various modes, including dockless e-bikes and e-scooters; and other platform related services. The ATG and Other Technology Programs segment engages in the development and commercialization of autonomous vehicle and ridesharing technologies, as well as Uber Elevate. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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