Deliveroo H1 earnings: can Deliveroo continue their fightback as the share price hits a fresh high?​​​​​​​​​​​​​

Deliveroo earnings in view, but will their success prove sustainable post-lockdown?

​When will Deliveroo report their latest earnings?

Deliveroo report their earnings for the first half (H1) of 2021 pre-market on Wednesday 11 August 2021.

Deliveroo share price boosted by Delivery Hero purchase earnings – what to expect

Deliveroo have already been in the limelight coming into Wednesday’s earnings report, with the stock gaining ground in the wake of the announcement that their German rival Delivery Hero took a 5% stake in the firm.

That vote of confidence took the stock to its highest point since its initial public offering (IPO) price of 390p. This raised questions over the intent of the firm, with Delivery Hero’s operations spanning over 50 countries.

Crucially, that list of countries does not include Deliveroo’s main market in the UK. That focus on the UK is clear given the Deliveroo decision to offload their Spanish operations.

With Just Eat having feasted on the likes of Takeaway.com and GrubHub to create a £13.5 billion giant, questions will no doubt linger over whether this initial stake is the first step in Delivery Hero ultimately staging a takeover bid for their lesser rival Deliveroo.

Meanwhile, the group has other considerations for investors, with positive price action coming in response to their court victory over the classification of their workers in the UK.

Deliveroo earnings – what to expect

The last trading update provided by the firm signalled expectations of a 99% rise in gross transaction value (GTV), taking the figure to £3.3 billion. That would represent a 186% rise over the 2019 figure.

Meanwhile, fears that the removal of restrictions would dent demand were evidently lessened after the group speculated that full-year (FY) GTV would come in around the 50-60% mark rather than 30-40% previously indicated.

Nonetheless, investors will be keeping a very close eye out for any signs that demand is waning as people return to some form of normality.

Deliveroo earnings – valuation and broker ratings

Deliveroo’s short period on the market has not been plain sailing. However, we are gradually seeing confidence return with five brokers rating the stock a ‘strong buy’ or ‘buy’ recommendation. There are four ‘holds’ and one ‘sell’ recommendation.

Deliveroo shares – technical analysis

Deliveroo has been on a positive run of form over the course of the past two-months, with the stock rising into a record high ahead of their earnings release.

The four-hourly chart highlights this trend well, with the latest rise coming off the back of a 61.8% Fibonacci retracement. That level now provides us with the key threshold that must hold for this bullish trend to persist.

As such, a positive outlook remains in place for this stock unless the price drops back below the £3.08 low.

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