Uber and Disney see resilient spending despite Iran war-driven slowdown fears

Wall Street fears of an Iran war-driven economic slowdown were challenged on Wednesday after Uber and Disney delivered upbeat earnings and forecasts, signalling that higher fuel prices have yet to meaningfully dent consumer spending in the United States.

The results from the two companies suggested Americans continue to spend on ride-hailing, food delivery, vacations and theme park visits despite surging gasoline prices and mounting geopolitical uncertainty in West Asia.

Uber shares jumped more than 8 per cent after the company forecast second-quarter bookings above Wall Street expectations, while Disney rose over 7 per cent following stronger-than-expected growth in its streaming and parks businesses.

The positive outlook came even as fuel prices in the United States remain sharply elevated amid disruptions linked to the Iran conflict. The national average price for regular gasoline has climbed to $4.54 a gallon, up about 52 per cent since the war began, according to AAA data. Diesel prices have also surged to $5.67 a gallon.

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Uber’s delivery business remained its biggest growth engine during the quarter, with revenue rising 34 per cent year-on-year to $5.07 billion. Ride-hailing revenue increased 5 per cent to $6.8 billion, supported by resilient commuting demand and higher local spending activity.

The company projected gross bookings of between $56.25 billion and $57.75 billion for the June quarter, ahead of analysts’ estimates of $56.07 billion, according to LSEG data. Uber said the guidance already factors in an estimated 60-basis-point drag from the West Asia conflict.

The San Francisco-based company said steady pricing, expansion into higher-margin services and robust international delivery demand helped offset the impact of higher fuel costs and geopolitical tensions.

Uber CEO Dara Khosrowshahi, on CNBC’s Squawk Box, pointed to the return-to-office trend as a key driver of ride demand, saying consumers were leaving their homes more frequently. Uber now has more than 10 million earners globally across its driving and delivery businesses.

The company has steadily expanded beyond ride-hailing into food delivery, grocery, travel and local commerce, including hotel bookings. Its Uber One membership programme has crossed 50 million users worldwide.

Disney’s earnings painted a similarly resilient picture of consumer demand.

The entertainment giant’s experiences division — which includes theme parks, cruises and consumer products — generated nearly $9.5 billion in quarterly revenue, up 7 per cent from a year earlier. Global attendance increased 2 per cent, although domestic park visitation slipped 1 per cent.

Disney reported adjusted earnings per share of $1.57 on revenue of $25.2 billion for the January-March quarter, beating analyst expectations.

New Disney CEO Josh D’Amaro said the company would continue investing in streaming, live sports, cruises and theme parks while deepening customer engagement.

Disney finance chief Hugh Johnston, however, cautioned that the company remained alert to the possibility that persistently high fuel prices could eventually weigh on consumers.

Oil prices remained volatile on Thursday as investors monitored developments around possible negotiations between Washington and Tehran. Brent crude traded near $102 a barrel after falling sharply in the previous session on hopes of a potential peace agreement, while US benchmark West Texas Intermediate hovered around $96 a barrel.

Even so, consumer-facing companies tied to travel, entertainment and local commerce are so far seeing little evidence that Americans are significantly pulling back spending despite the Iran war and rising fuel prices.

With inputs from agencies.