Ride-hailing competitors Uber Technologies Inc (NYSE:UBER) and Lyft Inc (NASDAQ:LYFT) both report fourth-quarter earnings in the coming days and analysts at RBC Capital Markets believe both can beat market estimates.
Uber reports on Wednesday, Feb. 7, and is expected to post fourth-quarter earnings of $0.15 a share, down around 48% from last year.
Although this seems like a dramatic drop, the company flagged up at the end of 2023 high sales and marketing expenses, and costs associated with driving incentives following changes in the company’s business model.
Revenues are expected to increase 13.2% from the year-ago period to $9.75 billion, with the top line benefiting from strength in its food delivery service and mobility business.
Consensus estimates on Lyft, which reports on Tuesday, Feb. 13, expect fourth-quarter earnings of $0.08 a share — which would represent growth of 111% over the same quarter a year ago. Revenues are expected at $1.22 billion, up 3.6% over the same quarter in 2023.
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