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Fresh Earnings Beat
Shares in Uber are trading a touch softer ahead of the US open today. The stock was seen rallying around 6% yesterday ahead of Q4 earnings which came out after the bell. Uber posted a beta on earnings and revenues once again, marking the fifth consecutive quarter of earnings growth.
The Numbers
On the numbers front, Uber posted Q4 EPS of $0.66, well above the $0.16 the market was looking for. Revenues were also higher at $9.936 billion bs $9.756 billion expected. Earnings, while positive, were around 30% softer than the prior quarter though revenues were seen rising with both seen higher against the same quarter a year prior.
First Annual Profit
Q4 results were an historic moment for the company, marking the first ever annual profit for Uber. With gains of $1.1 billion, Uber finally made good on investor capital after years of utilising them to fund an aggressive expansion globally. The company noted soaring demand levels last year with customers booking around 2.6 billion trips in Q4, roughly 28 million per day.
Capital Allocation to Be Outlined
Looking ahead, the company forecasts demand to continue to rise as the post-pandemic recovery evolves further. In terms of how Uber plans to use its profits, the CEO noted that capital allocation plans will be outlined next week. Many are speculating that it will announce a share buyback program which should help further support stock prices near-term.
Technical Views
Uber
The breakout above the 64.08 prior all time highs continues for now with the outlook remaining bullish while above. The stock is moving within a tight bullish channel though we are seeing some bearish divergence creeping in on momentum studies readings, suggesting risks of a correction lower near term. If we slip back below 64.08, 57.30 will be next support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.