UBER - Uber's results set to come amid rising riders and government scrutiny
Uber Technologies ( NYSE: UBER ) is scheduled to report its fiscal third-quarter results prior to Tuesday's market open, and update comes at a time when customers are returning to the ride-sharing provider, and it is also facing a governmental challenge to the employment status of its drivers.
Wall Street analysts currently expect Uber ( UBER ) to report a profit of 6 cents a share, excluding one-time items, on revenue of $8.12B for the quarter that ended in September. The company itself also said it expects gross bookings of $29B to $30B, while analysts have forecast Uber's ( UBER ) gross bookings of $29.67B.
Wedbush analyst Dan Ives said that he is expecting Uber ( UBER ) to report "solid results which should be the Street", and give a strong outlook for the fourth quarter of this year.
"We believe [Uber's results are] a hittable number as the company continues its push into new international markets," Ives said, adding that the company "has placed a strong emphasis on growing margins along with its aggressive growth plan."
Ives added that Uber ( UBER ) is facing "more uncertainty" around the U.S. Labor Department's proposal that would reclassify gig-economy workers, like Uber's ( UBER ) drivers, as regular employees. However, Ives said that he views the chances of a full reclassification all U.S. rideshare workers to regular company employees as "very low."
Ives said that as Uber ( UBER ) has already begun to roll out unconditional upfront pricing, which allows drivers to know an exact pickup and drop-off location before accepting a ride. "This will be important in helping Uber avoid making its drivers classified as employees but will increase fares and wait times as driver rejection of rides will increase."
Uber ( UBER ) shares have fallen almost 30% this year, and took a noticeable hit in early October when reports of the Labor Department's worker-classification plans became public .
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Uber's results set to come amid rising riders and government scrutiny