UBER - Uber shares waver in wake of 'strongest quarter ever'

Uber Technologies ( NYSE: UBER ) shares clung to small gains Tuesday in the wake of the ride-hailing leader's fourth-quarter results that included better-than-expected revenue and solid bookings growth.

Before U.S. stock markets opened, Uber ( UBER ) reported a fourth-quarter profit of 29 cents a share, on revenue of $8.6B. Total bookings for the period ending December 31 reached $30.7B, an increase of 19% from a year ago.

The company's results showed more riders returning to Uber ( UBER ) due to the receding of the COVID-19 pandemic. Mobility revenue reached $4.14B, an 82% increase from the fourth quarter of 2021, and surpassed it $2.93B in delivery revenue to reclaim the position as Uber's ( UBER ) top source of sales.

In a statement, Uber ( UBER ) Chief Executive Dara Khosrowshahi called the last three months of 2021 "our strongest quarter ever."

The company didn't give an earnings-per-share or revenue outlook for the first quarter of this year, but said it expects bookings to grow between 20% and 24% from a year ago. That outlook would put bookings in a range of $31B to $32B.

Morgan Stanley analyst Eric Sheridan said Uber's ( UBER ) results showed the company continuing on a "trend line of delivering on guidance and improved profitability." Sheridan, who has buy rating and $45-a-share price target on Uber's ( UBER ) stock, said investors are likely to keep their attention on the company's "current and forward projections for end dynamics across both the mobility and delivery segments."

At Wedbush, analyst Dan Ives said the results showed that "we are seeing a leaner Uber finally hitting the inflection of growth" after what he said had been a "transitional year of growth and cost cutting." Ives has an outperform rating and $38-a-share target price on Uber's ( UBER ) stock.

Wall Street analysts and Seeking Alpha authors both have consensus buy ratings on Uber's ( UBER ) stock. Seeking Alpha's Quant System, which historically outperforms the stock market, also gives a buy rating to Uber's shares.

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