Uber targets Q2 beat with $57.3B bookings as AV takes spotlight

Uber Technologies is expected to report Q2 gross bookings of $57.3 billion, slightly above Wall Street's $57.2 billion consensus, according to Bank of America.

"While metrics and fundamentals always matter, we think the US AV supply uncertainty has been the top near-term stock driver, and US supply commentary may be the most important aspect of the Q2 call," analysts at Bank of America wrote in a note.

The bank forecasts adjusted EBITDA of $2.77 billion, compared with the consensus estimate of $2.73 billion, and revenue of about $14.2 billion, in line with expectations. Gross bookings grew 21 percent year over year on a constant-currency basis during the quarter, matching first-quarter growth. US online transit spending rose 9 percent in the second quarter, while online restaurant sales also increased 9 percent, according to aggregated credit and debit card data from BofA.

The report comes as investors focus on Uber's autonomous vehicle strategy following recent developments with Waymo and Lucid. Bank of America expects Uber to address investor concerns by highlighting progress with international AV partnerships and its US launch pipeline. Jefferies also said Uber's AV strategy remains intact.

Looking ahead, Bank of America expects Uber to guide for third-quarter gross bookings of $58.5 billion to $60 billion and adjusted earnings per share of $0.83 to $0.87, ranges that would bracket current Street expectations. The bank said stronger core operating trends are likely to be partly offset by foreign exchange headwinds.

Beyond the quarterly figures, the autonomous vehicle landscape has become the defining narrative for Uber's stock. "While the Waymo news is a setback, we still believe many OEMs will incorporate AV capabilities, Uber has a lot to offer potential AV partners, and it will be several quarters before Waymo's AV ramp will impact Uber results," the BofA analysts said.

The earnings report will test whether Uber can sustain its growth momentum amid shifting investor sentiment toward big-tech spending. Uber shares have been under pressure this year as the market reassesses the timeline for autonomous vehicle commercialization. Investors will watch the Q2 earnings call for updated AV partnership details and Q3 guidance that could determine the stock's near-term direction.

This article is for informational purposes only and does not constitute investment advice.