Uber Technologies (UBER) stock fell early Tuesday, despite the ride-hailing and food-delivery company delivering third-quarter results ahead of expectations.
Uber said that it earned $3.11 per share for the September-ended quarter, well ahead of the 69 cents per share that analysts polled by FactSet were forecasting. Revenue increased 20% to $13.47 billion, beating analyst estimates of $13.28 billion. It was the second straight quarter of accelerating top-line growth.
Uber’s earnings-per-share jumped 159% year-over-year. But that included a $4.9 billion benefit from a “tax valuation release,” Uber said in a news release, as well as a $1.5 billion pretax benefit from a revaluation of Uber’s equity investments.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) grew 33% to $2.26 billion, just below estimates of $2.27 billion.
Meanwhile, Uber’s gross bookings grew 21% to $49.74, ahead of estimates of $49.02 billion. Bookings include fares charged, as well as the total costs charged on food deliveries and other services. Total trips through Uber grew 22% to 3.5 billion.
“Uber’s growth kicked into high gear in Q3, marking one of the largest trip-volume increases in the company’s history,” Uber Chief Executive Dara Khosrowshahi said in a news release. “We’re building on that momentum by investing in lifelong customer relationships, leaning into our local commerce strategy, and harnessing the transformative potential of AI and autonomy.”
For the current quarter, Uber said it expects total bookings of $53 billion, at the midpoint of its given range. Analysts were looking for $52.2 billion, according to FactSet. Uber also guided for adjusted EBITDA of $2.46 billion at the midpoint, just below expectations of $2.47 billion.
Uber Stock Falls
On the stock market today, Uber is down 4.76 to 95.12 in recent premarket trades, signaling at least a test of the 50-day moving average.
Uber stock rose 3.3% on Monday. The stock is up 65% year-to-date as of Monday.
Shares for Uber have formed a flat base pattern with a buy point at 101.99, according to IBD MarketSurge.
Uber stock holds an IBD Composite Rating of 92 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating.
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