Uber Technologies
has officially reported enough positive earnings to qualify the ride-sharing company to join the
S&P 500.
Among the criteria for inclusion in the S&P 500 index, the sum of the company’s most recent four consecutive quarters’ earnings should be positive, as should the most recent quarter, according to S&P Global.
Uber,
with a market capitalization of $98 billion, is currently the largest U.S. company not in the S&P 500. That far exceeds the market value of some companies that are currently in the index, such as
Generac Holdings
(GNRC), with a market cap of $6.38 billion, and
Norwegian Cruise Line Holdings
(NCLH), valued at $5.58 billion.
However, on Tuesday, Uber reported third-quarter earnings of 10 cents a share, beating the consensus estimate of 7 cents a share. That puts the sum of the last four quarters’ earnings into positive territory and would qualify Uber to be added into the S&P 500.
S&P Global declined to comment on potential index constituent changes, but instead pointed Barron’s to the S&P Global methodology document that details eligibility criteria for index inclusion.
Shares of Uber (ticker: UBER) jumped 3.3% Tuesday after the company its latest earnings report, and were on pace for their highest close since July 2021, according to Dow Jones Market Data. The stock has jumped 101% this year.
Shares of competitor
Lyft
(LYFT) were rising 2.1%. Lyft is scheduled to report third-quarter earnings after Wednesday’s market close.
For the third quarter, Uber reported revenue of $9.29 billion. Analysts surveyed by FactSet were expecting the ride-share company to post revenue of $9.54 billion. In the same period last year, Uber posted revenue of $8.34 billion.
Uber’s third-quarter gross bookings were $35.3 billion in the period, above Wall Street estimates of $34.6 billion and an increase of 21% from last year’s $29.1 billion.
The company’s ride-hailing, or mobility segment, saw revenue jump 33% from the prior year to $5.1 billion as trip volumes increased. The delivery segment, or Uber Eats, revenue gained 6% year over year. Freight revenue, however, declined 27% from the prior year to $1.3 billion.
For the fourth quarter, Uber expects to report bookings between $36.5 billion to $37.5 billion, which is in line with analysts’ estimates of $36.52 billion.The company also expects to post fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization between $1.18 billion and $1.24 billion, above Wall Street expectations of $1.15 billion.
“Consumer activity remains robust heading into our busiest period of the year,” Chief Executive Dara Khosrowshahi said on the earnings call.
Write to Angela Palumbo at [email protected]
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