Uber earnings miss forecasts, but ride-sharing group sees solid holiday quarter

Updated at 8:16 am EDT

Uber Technologies UBER posted softer-than-expected third quarter earnings Tuesday, but hinted at solid holiday season traffic as it forecast gross bookings and profits that topped Street estimates.  

Uber said revenue for the three months ended in June rose 11.4% from the same period last year to $9.29 billion, missing Wall Street forecasts of a $9.52 billion tally, as gross bookings rose 21% to $35.28 billion, topping the Street forecast of $34.5 billion.

Mobility revenue rose 33% to $5.1 billion on gross bookings of $17.9 billion, Uber said, while delivery rose 6% to $2.94 billion on gross bookings of 16.1 billion.

Uber's net income for the quarter were $221 million while adjusted earnings were pegged at 10 cents per share, up from the year-earlier loss of $61 cents per share but 2 cents shy of the Street consensus forecast. 

Looking into the current quarter, Uber said it sees adjusted earnings in the region of $1.18 million to $1.24 billion with gross bookings in the region of $36.5 billion to $37.5 billion.

 “Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25%,” said CEO Dara Khosrowshahi. “Uber’s core business is stronger than ever as we enter the busiest period of the year.” 

Uber shares were marked 1.1% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $47.61 each.

Earlier this autumn, Uber sand Analog Devices CFO Prashanth Mahendra-Rajah would replace the outgoing Nelson Chai, who unveiled plans to leave the company on January 5, as group finance chief. 

Mahendra-Rajah, who has also worked with vehicle technologies supplier WABCO Holdings, joins Uber on November 13. 

• Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.