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With Uber (New York Stock Exchange:UBER) and Lyft (Nasdaq:Lyft) reporting its quarterly earnings on November 7 and 8, UBS is optimistic about the results of both ride-sharing companies.
However, the firm also said it sees lower multiples for both companies “given broader macro pressure around the world.” Internet sector.” USB also likes Uber (UBER) about Lyft (LYFT).
Consensus estimates for Uber (UBER) are GAAP earnings per share of $0.12 and revenue of $9.54 billion. In the prior year period, the reported figures were -$0.61 and $8.34 billion. Only the top line was a beat.
Regarding Uber (UBER), UBS says its results have the “potential for further detail on return on equity and a turn toward profitable GAAP EPS earnings on a TTM basis (over the last 12 months), which could lay the basis for inclusion in the S&P 500 index in the upcoming index rebalancing later this year.
For Lyft, consensus estimates are for GAAP earnings per share of -$0.18 and revenue of $1.14 billion. In the third quarter of 2022, those figures were, respectively, -$1.18 and $1.05 billion.
UBS said it sees a potential risk to consensus contribution margins and adjusted EBITDA next year, resulting in contribution margin estimates likely to decline. However, “this is also likely to be offset to some extent by lower (operating expense) estimates, but overall it sees risk of adjusting EBITDA and reduces its estimates.”
UBS also intervened in DoorDash (DASH), which reports on November 1. He sees possible upward expectations in the bottom line and top results. Seaport Research recently gave the company a neutral rating.
“Short-term fears around GLP-1 drugs are overblown, but the long-term risk may be real if more people start using them, with eventual greater availability and lower costs,” UBS wrote.
