Uber shares retreat as weak outlook overshadows Q2 earnings and bookings beat

Uber Technologies Inc (NYSE:UBER, XETRA:UT8) shares fell about 6% in early trading Wednesday after the ride-hailing company issued a third quarter outlook that fell short of some Wall Street expectations, overshadowing better-than-expected gross bookings and adjusted EBITDA in the second quarter. For the third quarter, Uber expects adjusted EPS of $0.84 to $0.88, below the Wall Street average estimate of $0.89. Gross bookings are expected to reach $58.25 billion to $60.25 billion, compared with the $59.33 billion analyst average. The company forecast adjusted EBITDA of $2.86 billion to $2.96 billion. The outlook overshadowed Uber's second-quarter results, which included adjusted EPS of $0.81, in line with estimates, and revenue of $14.19 billion, narrowly below the $14.24 billion consensus. Gross bookings rose 24% year over year to $58.0 billion, or 22% on a constant-currency basis, beating the $57.06 billion analyst estimate. Adjusted EBITDA increased 33% to $2.8 billion, above expectations of about $2.77 billion. Trips grew 18% to 3.9 billion, while monthly active platform consumers increased 16%. Non-GAAP operating income rose 40% to $2.1 billion, and non-GAAP EPS increased 35% year over year to $0.81. On a GAAP basis, Uber reported operating income of $1.9 billion and net income attributable to Uber of $2.4 billion. GAAP diluted EPS was $1.17, including a $1.6 billion net benefit from revaluations of the company's equity investments. Uber generated $2.9 billion in operating cash flow and $2.8 billion in free cash flow during the quarter. The company also said trailing 12-month free cash flow exceeded $10 billion for the first time. “...