Uber Q4 Earnings Miss Estimates, Shares Drop
Uber Technologies (UBER) reported fourth-quarter operating income significantly below analysts' expectations, leading to a premarket stock decline.
Financial Highlights:
* Net income: $6.88 billion ($3.21 per share)
* Revenue: $11.96 billion
* Analysts' estimates: Net income $1.04 billion ($0.48 per share), revenue $11.76 billion (Visible Alpha)
Key Factors:
* Profits boosted by tax valuation release and investment revaluation.
* Operating income: $770 million, missing estimates of $1.21 billion.
* Adjusted EBITDA: $1.84 billion, slightly below expectations.
Market Reaction:
* Uber shares fell almost 7% post-report.
* Prior to the day, shares were up 1% over the past year.
Positive Metrics:
* Gross bookings: $44.2 billion (up 18%)
* Trips: 3.07 billion (up 18%)
* Analysts' expectations: $43.48 billion and 3.02 billion trips, respectively.
Previous Performance:
* Uber's Q3 gross bookings missed estimates, leading to a 9% stock decline.
* The company had guided Q4 gross bookings of $42.75 billion to $44.25 billion.
Source: Investopedia