Uber Withdraws FY20 Guidance Due To COVID-19 Impact

(RTTNews) - Uber Technologies Inc. (UBER) Thursday withdrew its 2020 guidance due to the ongoing COVID-19 pandemic. The ride hailing service also warned that its net losses would widen by $1.9 billion to $2.2 billion due to impairment charges. Shares of Uber gained nearly 5% in the extended session.

The company withdrew its financial outlook stating that "it is impossible to predict with precision the pandemic's cumulative impact on our future financial results."

The company said that it expects to record an impairment charge because of the coronavirus lockdown's impact on the value of the equity. The company believe investments to be reduced by an estimated range of $1.9 to $2.2 billion during the three months ended March 31, 2020.

Uber said it would report first-quarter earnings May 7, after the closing bell.

The company said that it has implemented an assistant program for its drivers and delivery people, which will reduce revenue by $17 million to $22 million in the first quarter, and roughly $60 million to $80 million in the second quarter.

UBER closed Thursday's trading at $27.03, down $0.38 or 1.39%, on the Nasdaq. The stock, however, gained $1.22 or 4.51%, in the after-hours trade.