Booking Holdings (NASDAQ: BKNG) reported stronger than expected earnings for the second quarter aided by a 9% increase in revenues. The top-line, which benefitted from strong bookings growth, also topped the Street view. The management provided guidance for the third quarter. The stock gained about 5% following the announcement.
Earnings, on an adjusted basis, rose to $23.59 per share from $20.67 per share in the second quarter of 2018. Net income, including special items, was $979 million or $22.44 per share, compared to $978 million last year. The bottom-line also came in above the estimates.
At $3.85 billion, revenues were higher by 9% from the year-ago period. Gross travel bookings moved up 5% to $25 billion during the quarter.
“Booking Holdings executed another strong quarter as we witnessed a solid start to the summer travel season. Globally, our accommodation business booked 213 million room nights in the second quarter, up 12% over the same period last year,” said Glenn Fogel, Chief Executive Officer of Booking Holdings.
Looking ahead, the company expects revenue growth in the range of 2-4% in the third quarter. Unadjusted earnings are forecast to be between $42.60 per share and $43.60 and per share. The outlook for adjusted earnings is $43.60-$44.60 per share.
Total room nights booked and gross travel bookings are forecast to grow 6-8% and 1.5-3.5%, respectively. The management currently expects adjusted EBITDA in the range of $2.40 billion to $2.45 billion for the September quarter.
Rival travel company Expedia (EXPE) last month reported a double-digit increase in second-quarter earnings, aided by strong booking growth that pushed up revenues by 9%. Meanwhile, TripAdvisor (TRIP) will be publishing results for its most recent quarter on Thursday before the opening bell.
For the shares of Booking Holdings, it has been a rollercoaster ride for more than a year, losing about 5% during that period. Since the beginning of the year, the stock has gained around 4%. It closed Wednesday’s regular session higher.