Uber notches huge earnings beat, but stock falls after results

Uber Technologies Inc.
UBER,
+2.15%
logged a sizable earnings beat for the latest quarter and delivered an upbeat outlook for the current one, but its stock was dropping about 1% in Wednesday’s premarket activity. The company recorded fourth-quarter net income of $1.4 billion, or 66 cents a share, compared with $595 million, or 29 cents a share, in the year-before period. The FactSet consensus was for 16 cents a share in earnings. Uber’s revenue rose to $9.9 billion from $8.6 billion, while the FactSet consensus was for $9.8 billion. The company logged a 22% rise in gross bookings to reach $37.6 billion, while analysts had been looking for $37.1 billion. “Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating gross bookings” in the fourth quarter, Chief Financial Officer Prashanth Mahendra-Rajah said in a release. Looking to the first quarter, Uber is anticipating $37.0 billion to $38.5 billion in gross bookings along with $1.26 billion to $1.34 billion in adjusted earnings before interest, taxes, depreciation and amortization (Ebitda). The FactSet consensus called for $37.4 billion and $1.26 billion, respectively.