Grab Holdings (NASDAQ:GRAB) fell in pre-market trading after the company’s poor outlook disappointed investors. The Southeast Asian superapp for deliveries, mobility, and digital financial services forecasted FY24 revenues between $2.7 billion and $2.75 billion, below Street forecasts of $2.8 billion. The firm also projected adjusted EBITDA in the range of $180 million to $200 million in FY24.
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In the fourth quarter, the company’s revenue grew 30% year-over-year to $653 million, above consensus estimates of $633.8 million. GRAB swung to a profit in the fourth quarter with earnings of $0.01 per share compared to a loss of $0.10 per share in the same period last year. Analysts were expecting a loss of $0.02 per share.
In addition, Grab’s Board of Directors authorized a share repurchase program of up to $500 million. The company’s Board also approved the full repayment of its Term Loan B that was issued in January 2021 with a principal amount of $2 billion. As of December 31, 2023, $497 million remained outstanding on this loan in principal and interest.
Is GRAB Stock a Good Buy?
Analysts remain bullish about GRAB stock with a Strong Buy consensus rating based on eight Buys. Over the past year, GRAB stock has slid by 1.4%, and the average GRAB price target of $4.36 implies an upside potential of 26.4% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
