Uber Technologies Inc. (NYSE: UBER) is set to report its most recent quarterly results after the markets close on Thursday. The consensus estimates call for a net loss of $0.83 per share and $3.51 billion in revenue for the first quarter. The same period of last year reportedly had a net loss of $2.23 per share and $3.04 billion in revenue.
Ride-hailing rival Lyft (NASDAQ: LYFT) already announced its first-quarter results and the reaction was explosive. Will Uber be able to keep up?
Uber recently said that it is leading an investment round of $170 million in the scooter-rental company Lime. Alphabet, GV and Bain Capital are a few of the big-name stakeholders in Lime. Ultimately, this investment round valued Lime at roughly $400 million, according to Bloomberg.
On Wednesday, Uber shared that it plans to take more action to cut costs due to the COVID-19 pandemic. This includes layoffs and executive pay cuts.
In a filing with the U.S. Securities and Exchange Commission, the company noted that it plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the ongoing pandemic and its impact on the business.
The company detailed:
Due to lower trip volumes in its Rides segment and the Company’s current hiring freeze, the Company is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles. In connection with these actions, the Company estimates that it will incur approximately $20 million related to severance and other termination benefits. The Company is evaluating other cost and will provide an update in subsequent SEC disclosures regarding such amounts, if material.
Excluding Thursday’s move, Uber stock had outperformed the S&P 500 and Dow Jones industrial average with a decline of about 6.5% year to date.
Here’s what a few analysts are saying about Uber ahead of the report:
- RBC has a Buy rating with a $44 price target.
- Raymond James rates it as Outperform with a $36 target.
- UBS has a Buy rating with a $38 target price.
- SunTrust’s Buy rating comes with a $42 price target.
- BofA Securities has a Buy rating and a $40 price target.
- Goldman Sachs has a Buy rating with a $41 price target.
Uber stock traded up about 8% at $30.05 on Thursday, in a 52-week range of $13.71 to $47.08. The consensus price target is $38.02.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
