Uber $UBER reported mixed results this quarter, topping revenue, but missing EPS expectations.
Instead of celebrating what seemed to be a decent quarter, the stock dipped 2.5% on the day.
That’s not what strength looks like.
Revenue growth is slowing, and the company's sales and marketing spend is ramping up. This is a red flag for a business that’s supposed to be "scaling efficiently."
So while the revenue numbers came in hot, the internals are raising eyebrows.
In this tape, surface-level beats won’t cut it. Investors want margin discipline, accelerating growth, and clean execution.
Uber didn’t deliver that. And the market responded accordingly.
This wasn’t a disaster, but it wasn’t convincing either.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Charles River Laboratories $CRL had the best reaction score after reporting a double beat.
The company reported revenues of $980M, versus the $940M estimate, and earnings per share of $2.14, versus the $2.18 estimate.
International Flavors & Fragrances $IFF had the worst reaction score after reporting a double beat.
The company reported revenues of $2.84B, versus the $2.83B estimate, and earnings per share of $1.20, versus the $1.14 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
CRL had its best earnings reaction ever:
Charles River Lab rallied 10.3% after this earnings report, and here's why:
Despite a 2.7% year-over-year revenue decline, results exceeded prior expectations, especially in the Discovery and Safety Assessment (DSA) segment.
The DSA segment saw its net book-to-bill ratio rise above 1x for the first time in over two years, with net bookings up more than 20% year-over-year.
Non-GAAP operating margin improved to 19.1% (up 60 basis points year-over-year), primarily due to cost savings from restructuring initiatives.
This company has been a complete disaster in recent years, but things are starting to turn around.
It's also clear that all of the bad news is already baked in... the stock had its best earnings reaction ever after reporting a revenue decline of 2.7%!
The stock recently found support at the VWAP anchored to the GFC low. This level coincides with a shelf of former lows, and the neckline of a massive potential distribution pattern.
If CRL is above 107, the path of least resistance is likely to remain higher for the foreseeable future.
UBER had its 3rd consecutive negative earnings reaction:
Uber fell 2.5% after this earnings report, and here's why:
Revenue growth slowed to 14% year-over-year in Q1 2025, compared to 20% in Q4 2024 and 22% in Q3 2024.
Gross bookings growth decelerated to 14% from 20% in Q4 2024 and 18% in Q3 2024.
Sales and marketing expenses increased by 15% year-over-year, driven by higher consumer discounts, promotions, and advertising.
Despite reporting an impressive quarter (double-digit revenue growth), the market wanted more.
The stock is flirting with new all-time highs and the resolution of a multi-year consolidation.
We expect the price to continue churning sideways until the bulls make a decisive upside resolution.
If UBER is below 91, the path of least resistance is likely to remain sideways for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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