Shares of mobility giant Uber Technologies, Inc. (UBER) declined 4.7% in the extended trading hours and closed at $39.85 even though the company posted solid second-quarter results. Its strong performance was primarily driven by the growth in revenues.
Quarterly revenues stood at $3.93 billion, up 105% from the same quarter last year. This significant rise in revenues can be attributed to the growth it witnessed in all its business segments, especially delivery revenues that grew 122% to $1.96 billion. Moreover, the revenue figure surpassed the consensus estimate of $3.74 billion.
Earnings per share (EPS) stood at $0.58, which compares favorably with a loss of $1.02 reported last year. Further, it topped the Street’s estimate of a loss of $0.51 per share.
Notably, Q2 gross bookings grew 114% from last year to $21.9 billion, and monthly active users jumped 84% to 101 million.
The CEO of Uber, Dara Khosrowshahi, said, “In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increasing by nearly 420,000 from February to July. Our platform is getting stronger each quarter, with consumers who engage with both Mobility and Delivery now generating nearly half of our total company Gross Bookings.” (See Uber stock chart on TipRanks)
On August 5, Evercore ISI analyst Mark Mahaney reiterated a Buy rating on the stock with a price target of $76. The analyst’s price target implies upside potential of 81.8% from current levels.
Consensus among analysts is a Strong Buy based on 20 Buys and 4 Holds. The average Uber price target of $71.67 implies upside potential of 71.4% from current levels. Shares have gained 25.9% over the past year.
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