Uber, Lyft seen having strong Q3 results, though with lower multiples
Consensus estimates for Uber (UBER) are GAAP EPS of $0.12 and revenue of $9.54B. In the prior-year period, the reported figures were -$0.61 and $8.34B. Only the top line was a beat.
Regarding Uber (UBER), UBS says it results have the “potential for more specifics on capital return and a flip to profitable GAAP EPS on a TTM (trailing 12 months) basis, which could set the stage for S&P 500 index inclusion in the next index rebalancing later this year.”
For Lyft, consensus estimates are GAAP EPS of -$0.18 and revenue of $1.14B. In Q3 2022, those figures were, respectively, -$1.18 and $1.05B.
UBS said it sees potential risk for consensus contribution margins and adjusted EBITDA next year, resulting in contribution margin estimates likely to decline. However, “this is likely somewhat offset by lower [operating expenses] estimates as well, but overall it sees risk to adj EBITDA and it reduces its estimates.”
“Near-term fears around GLP-1 drugs are overstated, but the long-term risk may be real here if a larger number of people starts to use them, with eventual wider availability and cost declines,” UBS wrote.