In the past few weeks, Uber stock has performed poorly. Nevertheless, Wall Street analysts continued providing a positive outlook on this stock. On Wednesday, Oppenheimer analyst Jason Helfstein reiterated his positive outperform rating for Uber stock, asserting that the company has the "most upside within large-cap internet" firms.
UBER Earnings Forecast
Uber is anticipated to report earnings of $0.31 per share for the current quarter, representing a 72.2% increase from the previous year. The consensus earnings estimate of $0.85 for the current fiscal year represents a 2.3% decline from the previous year, with a -31.1% change in this estimate over the past month.
The consensus earnings estimate of $2.17 for the upcoming fiscal year indicates a 155.6% increase from the anticipated report from one year ago, with the estimate having fluctuated by 2.2% in the past month.
UBER Estimated Revenue Growth
Although earnings growth is a critical indicator of a company's financial health, revenue growth is also essential. It is imperative to evaluate a company's potential for revenue development, as sustained earnings growth is difficult to achieve without revenue increases.
The current quarter's consensus sales estimate of $10.57 billion for Uber indicates a 14.5% year-over-year increase. The current and upcoming fiscal years are anticipated to experience increases of 15.9% and 16.9%, respectively, with estimates of $43.21 billion and $50.5 billion.
Uber's revenue increased by 14.8% yearly to $10.13 billion in the most recently reported quarter. The EPS for the same period was $0.32, a decrease from $0.08 a year ago. Uber has surpassed consensus EPS estimates twice and surpassed consensus revenue estimates twice in the last four quarters.
Analysts Opinion On UBER
Helfstein states Uber is experiencing "tailwinds from healthy affluent consumers, travel demand, and services spending." According to him, Uber's earnings estimates have improved since its analyst day on February 14, despite the stock trading lower, which presents an "attractive entry point" amid the recent stock correction.
Helfstein identified numerous advantageous data factors for Uber, including robust travel demand. According to a consumer confidence survey conducted in April, a record-high percentage of households in the United States are planning international travel within the next six months. Additionally, the number of air passengers and road trippers on Memorial Day increased year over year.
Another monitoring aspect is the potential initial public offering in Hong Kong by Uber's international competitor, Didi Global. Oppenheimer maintained its price target of 90 for Uber stock and increased its projections for Uber's gross bookings in 2025 and 2026 by 2%.
Uber Stock Forecast Technical Analysis
In the daily chart of UBER stock price, an ongoing bullish trend is visible, where the broader market trend found support from the crucial MA line.
In the volume structure, the largest activity level since November 2023 is at 61.87 level, which is below the 62.99 support line. Moreover, the recent upward pressure from the Moving Average zone suggested a potential bullish trend trading opportunity as a range breakout.
Based on the daily market outlook, the upward pressure on UBER is active as long as the price trades above the 62.99 support level. In that case, the upward pressure might extend toward the 82.04 resistance level, before reaching the 90.00 psychological line.
On the bearish side, a downside pressure below the current high volume line could extend the loss towards the 56.00 level before opening another long opportunity.
