Uber Technologies Inc (NYSE:UBER) shares moved higher in pre-market trading Friday after the company said it was withdrawing its 2020 guidance because of the “uncertainty” caused by the coronavirus (COVID-19) pandemic but noted the relatively small effect of programs help drivers during the crisis.
The company’s stock was up 5.2% to $28.46 a share in New York.
Uber said it was impossible to predict financial results during its fourth-quarter earnings call after-hours on Thursday. Uber also warned that it expects an impairment charge because of declines in investments.
READ: Uber boosted by profitability promise as losses soar
"Given the evolving nature of COVID-19 and the uncertainty it has caused for every industry in every part of the world, it is impossible to predict with precision the pandemic’s cumulative impact on our future financial results," the company said in a statement Thursday.
The company’s ride-sharing and delivery businesses have been affected by the coronavirus pandemic and lockdowns, but Uber has given little guidance on the expected effects until now.
Investors may be cheered by the relatively small effect of programs that Uber rolled out to help drivers during the pandemic. The company said it expects that program to reduce GAAP net income by an estimated $17 million to $22 million in the first quarter and an estimated $60 million to $80 million in the second quarter.
Uber also said it would take a one-time charge of between $1.9 billion and $2.2 billion on the value of equity investments, affecting GAAP net loss by that amount. As of the end of last year, Uber had had stakes in Didi, Grab, Zomato, and its Yandex.Taxi joint venture, according to its annual report.
Last year, Uber reported a $8.51 billion net loss, primarily because of stock-based compensation.