Results: Uber Technologies, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders of Uber Technologies, Inc. (NYSE:UBER) will be pleased this week, given that the stock price is up 12% to US$74.60 following its latest yearly results. It looks like a credible result overall - although revenues of US$44b were what the analysts expected, Uber Technologies surprised by delivering a (statutory) profit of US$4.56 per share, an impressive 142% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Uber Technologies after the latest results.

See our latest analysis for Uber Technologies

Taking into account the latest results, the current consensus from Uber Technologies' 48 analysts is for revenues of US$50.5b in 2025. This would reflect a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dive 48% to US$2.44 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$50.4b and earnings per share (EPS) of US$2.33 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$88.24, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Uber Technologies at US$115 per share, while the most bearish prices it at US$68.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Uber Technologies' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.4% annually. Even after the forecast slowdown in growth, it seems obvious that Uber Technologies is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Uber Technologies following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Uber Technologies analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Uber Technologies that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.