Uber (UBER) To Report Q4 Earnings: What's In The Offing?
Zacks Investment Research | Feb 02, 2020 08:22PM ET
Uber Technologies (NYSE:UBER) , which went public on May 10, 2019, is scheduled to report fourth-quarter 2019 results on Feb 6, after market close.
The Zacks Consensus Estimate for the December-end quarter is currently pegged at a loss of 69 cents, indicating a deterioration from the consensus mark of a loss of 66 cents 90 days ago. Given this backdrop, let’s delve into the factors that might have influenced the company’s performance in the said period.
Alike the first three quarters of 2019, high costs are likely to have adversely impacted Uber’s fourth-quarter 2019 performance. With Uber spending significantly on promotions and driver incentives to cope with competition from rivals like Lyft (NASDAQ:LYFT) for higher market share, escalating costs are expected to get reflected in the company’s bottom-line results.
In a bid to cut costs and improve efficiencies, Uber trimmed its workforce. In October 2019, Uber reduced its headcount by roughly 350 employees. As a result, the surge in costs might have been mitigated to some extent. Moreover, the Core Platforms unit is likely to have performed well on the back of upbeat ridesharing revenues.
Ridesharing revenues are likely to have been boosted by Uber’s endeavors to expand its operations. In line with its expansion efforts, in October 2019, the company increased its market share in West Africa by virtue of a boat service in the Nigerian city of Lagos. The Zacks Consensus Estimate for revenues from rides for the fourth quarter is pegged at $2,978 million, higher than the $2,895 million, reported in third-quarter 2019. The Zacks Consensus Estimate for fourth-quarter 2019 Uber Eats revenues is pegged at $699 million, higher than the $645 million, reported in the September-end quarter.
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