Uber Speeds Past Expectations, Analysts 'Not Seeing Signs Of Consumer Softness' - Uber Technologies (NYSE

Shares of Uber Technologies Inc (NYSE:UBER) were climbing on Wednesday, after the company reported impressive second-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

BofA Securities analyst Justin Post reiterated a Buy rating, while raising the price target from $87 to $88.
Goldman Sachs analyst Eric Sheridan maintained a Buy rating, while lifting the price target from $85 to $90.
Truist Securities analyst Youssef Squali maintained a Buy rating, while raising the price target from $86 to $88.
JMP Securities analyst Andrew Boone reaffirmed a Market Outperform rating, while lifting the price target from $75 to $80.
JPMorgan analyst Doug Anmuth reiterated an Overweight rating and price target of $95.
RBC Capital Markets analyst Brad Erickson maintained an Outperform rating and price target of $80.
BMO Capital Markets analyst Brian Pitz reaffirmed an Outperform rating and price target of $92

Check out other analyst stock ratings.

BofA Securities: Uber Technologies reported second-quarter revenues and EBITDA of $10.70 billion and $1.57 billion, respectively, beating consensus of $10.53 billion and $1.5 billion, "despite a large FX headwind," Post said in a note. Bookings of $40.0 billion came in 1% above Street expectations, he added.

Although the midpoint of management's guidance rage for third-quarter gross bookings between $40.25 billion and $41.75 billion came in slightly below consensus of $41.3 billion, "a stable 20.5% CC growth outlook is a positive given comps," the analyst stated. "Profits were a bright spot, with the midpoint of Uber’s $1.58bn-$1.68bn EBITDA guide slightly above the Street at $1.625bn, suggesting continued 9%+ y/y incremental margins," he further wrote.

Goldman Sachs: Uber reported "a strong set of operating results," with higher-than-expected gross bookings and management highlighting "continued improvements to their category position across most top markets," Sheridan said.

Regarding the macro environment, management indicated that Uber's consumers were healthy, "highlighting strong units and frequency growth, increased adoption of multiple products & healthy membership adoption/growth," the analyst stated. About the future of autonomous vehicles, management highlighted Uber's scale in Mobility, which could "position the company to be a partner to the broader Autonomous Vehicle industry in the coming years.”

Truist Securities: Stronger-than-expected second-quarter results and third-quarter guidance "show that demand for Mobility & Delivery continues to improve, driven by a resilient consumer, sticky products across both offerings and operational efficiencies," Squali said. The company reported record-high free cash flows and margins.

"Growth in Delivery & Mobility use cases, Uber One and driver supply are yielding higher MAPCs & order frequency, and should sustain at least mid-teens CAGR in GBs with strong margin accretion thru 2026," the analyst wrote.

JMP Securities: Uber delivered a beat and raise quarter, Boone said. The company's gross bookings came in higher than consensus and EBITDA was around 3% above the high end of guidance, Boone said. The company guided to third-quarter bookings and EBITDA higher than consensus.

"Uber is seeing no impact from the macro, while it believes it gained share across all its top markets Y/Y," the analyst wrote. The size of Mobility and Delivery may be able to support "years of elevated growth," he further stated.

JPMorgan: Uber reported at the top-end of the guidance for the 12th straight quarter, Anmuth said. Gross bookings came in slightly ahead of consensus and management guided to growth of 18%-23% year-on-year in constant currency terms.

"We think the outlook was largely in-line to ahead of expectations & included 400bps of FX headwind in the GBs guide of $40.25B-$41.75B," the analyst wrote. "Overall, Uber is not seeing signs of consumer softness in either Mobility or Delivery," he further stated.

RBC Capital Markets: Uber’s consumer "is showing no signs of softening for ride-hailing or delivery," Erickson said. Management's higher-than-expected EBITDA guidance was "a welcomed surprise and helps address a key source of recent investor contention," he added.

While adding new ride types to lower prices, Uber witnessed healthy subscription growth driving a "rising mix of multi-platform customers," the analyst wrote. Delivery gained share in each of its top 10 markets, he further stated.

BMO Capital Markets: Uber's Mobility bookings acceleration to 27% in the second quarter, with prospects of continued adoption ahead, as the company "remains less than 20% penetrated across each Mobility country, Pitz said. Delivery merchant growth was attractive, both from large chains and SMBs (small and medium businesses).

"Potential for lower off-platform Driver income should result in greater supply and lower price points for consumers," the analyst stated. "The Uber-Instacart partnership is seeing positive early signals with average basket size 20% greater than Native Uber Eats orders," he further wrote.

UBER Price Action: Shares of Uber Technologies had risen by 1.05% to $65.54 at the time of publication on Wednesday.

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