Ride-sharing company Uber Technologies (UBER) will report its second-quarter earnings tomorrow on August 6. The stock is up about 47% year-to-date, helped by new partnerships, such as with Alphabet’s (GOOGL) Waymo and a recent deal with Lucid (LCID), which are expanding Uber’s presence in key markets. Also, Uber’s strong financial results and solid position in the mobility and delivery markets have reinforced optimism around the stock. Wall Street analysts anticipate that the company will report earnings of $0.63 per share, up 34% from the year-ago quarter.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Meanwhile, revenues are expected to rise by 16.5% from the same quarter last year, reaching $12.5 billion, according to data from the TipRanks Forecast page. Notably, Uber has an encouraging earnings surprise history. The company missed earnings estimates just once out of the previous nine quarters.
Things to Know Ahead of Q2
Last month, Uber announced a $300 million deal with Lucid and Nuro to launch a large robotaxi fleet. Starting in late 2026, Uber plans to roll out over 20,000 Lucid Gravity SUVs with self-driving tech from Nuro. These vehicles will run only on the Uber app and are expected to cut down on charging time and expand ride services to many cities around the world.
Top Analyst’s Views on Uber Ahead of Q2 Results
Ahead of the Q2 print, Bank of America Securities, Top analyst Justin Post, maintained his Buy rating with a price target of $115 per share. For the second quarter, the 5-star analyst raised his estimates for bookings, revenue, and EBITDA, citing strong spending trends and foreign exchange tailwinds. He now expects $12.56 billion in revenue and $2.12 billion in EBITDA, slightly higher than what most analysts are predicting.
Further, he said Uber’s bookings could grow 19% year over year in Q2 to $47.1 billion, after adjusting for currency changes.
During the upcoming earnings call, Post expects Uber to highlight progress with Waymo city launches and other self-driving partnerships. However, he thinks investors may raise questions about rising competition from Tesla (TSLA) and Waymo.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.52% move in either direction.
Is UBER a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on UBER stock, based on 30 Buys and three Holds assigned in the last three months. The average Uber price target of $103.48 implies about 17% upside potential from current levels.
