On-demand food delivery service DoorDash (NYSE:DASH) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
DoorDash beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.71 billion, up 25% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and strong growth in its requests. It reported 643 million service requests, up 18.4% year on year.
Is DoorDash a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DoorDash’s revenue to grow 23.4% year on year to $2.84 billion, slowing from the 26.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.94 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DoorDash has missed Wall Street’s revenue estimates three times over the last two years.
Looking at DoorDash’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Uber delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 1.6%, and Alphabet reported revenues up 11.8%, in line with consensus estimates. Uber’s stock price was unchanged after the results, while Alphabet was down 7.2%.
Read our full analysis of Uber’s results here and Alphabet’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 10.6% on average over the last month. DoorDash is up 17.3% during the same time and is heading into earnings with an average analyst price target of $186.48 (compared to the current share price of $198).
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