Can UBER sustain its EPS growth into 2025?
3/28/2025 05:15pm
**Uber's EPS growth trajectory into 2025 appears promising**, considering both historical performance and current strategic initiatives. Here's an analysis to support this view:
1. **Consistent Growth Trend**: Uber has demonstrated a significant increase in EPS, with a year-over-year growth rate of 386.36% as of December 31, 2024. This robust growth sets a positive tone for future expectations.
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|UBER|UBER.N|Uber Technologies|2024 Q1|-322.2929936305733|14.824889493369604|-300|169|
|UBER|UBER.N|Uber Technologies|2024 Q2|155.83756345177665|15.926327193932826|161.11111111111111|169|
|UBER|UBER.N|Uber Technologies|2024 Q3|1086.7579908675798|20.40464916056823|1099.9999999999998|169|
|UBER|UBER.N|Uber Technologies|2024 Q4|305.94117647058823|20.360305958132045|386.3636363636363|169|
2. **Strategic Investments and Partnerships**: Uber's recent partnership with NVIDIA is expected to accelerate the development of autonomous driving capabilities. This strategic move is likely to enhance Uber's market position and could lead to increased efficiency and profitability, thereby supporting EPS growth.
3. **Market Dominance and Innovation**: Uber's continued dominance in the ride-sharing and food delivery markets, coupled with its innovative technology applications, positions it well for sustained growth. The company's ability to adapt and innovate is a key factor in its potential to sustain EPS growth.
4. **Financial Performance and Analyst Confidence**: Uber's financial performance, including revenue growth and profitability, has been impressive, with revenue increasing by approximately 28%. Analysts have set a high average 12-month target price of $81.66, indicating confidence in Uber's future performance.
5. **Share Buybacks and Confidence**: Uber's decision to initiate a $1.5 billion accelerated share repurchase program reflects confidence in its future and suggests that the company believes its stock is undervalued. This move can positively influence EPS growth by reducing the number of shares and potentially increasing earnings per share.
6. **Autonomous Vehicle Potential**: The successful launch of Uber's autonomous ride-hailing service in Abu Dhabi is a significant milestone, showcasing Uber's innovative approach to transportation. The autonomous vehicle market is expected to grow significantly, which could provide a substantial growth opportunity for Uber.
In conclusion, while there are no guarantees, Uber's strong financial performance, strategic initiatives, and positive analyst sentiment suggest that the company is well-positioned to sustain its EPS growth into 2025.