Categories AlphaGraphs, Analysis, Retail

Preview: Market bullish ahead of Booking Q3 earnings

Booking Holdings (BKNG) is scheduled to report third-quarter earnings on Monday, November 5. Analysts expect the travel giant to post earnings of $38.37 per share on a revenue of $4.8 billion. Analysts remain quite bullish on the stock, with none recommending a SELL rating. While 17 analysts recommend BUY, 14 have given HOLD rating. The stock has an average price target of $2174, which is at a 14% upside from Thursday’s close of $1896.09.

Booking has a habit of reporting better-than-expected earnings and has an average surprise of over 13% taking into account the trailing four quarters.

Market observers also predict that the company’s earnings would touch $4.4 billion by 2019, riding on strong performance across all platforms, which include, Agoda, Priceline, Kayak, RentalCars and Opentable.

Booking Holdings Gross booking

Agoda and RentalCars will together provide the biggest boost to the company’s merchant revenues during the third quarter due to the operational improvements they are undergoing. During the prior sequential quarter, Booking reported 42.5% year-over-year increase in overall merchant revenues.

During the second-quarter earnings, Booking said it expects 6-9% growth in room nights booked in Q3, while gross bookings are expected to improve 3-6%, helped by its diverse inventory. Adjusted EBITDA is projected to be between $2.3 billion and $2.36 billion.

Meanwhile, there is one aspect about this company that the market might be taking very lightly – the rapidly increasing competition in the industry. India-based OYO is probably the biggest threat to Booking with operations fast expanding to China, Singapore, Malaysia, and Europe.

Booking Holdings invests $500 million in Didi Chuxing

Unlike Booking, which acts as a hotel aggregator, OYO works closely with its property-owners to ensure a pre-set standard. As the travel and hospitality industry evolves to cater to more luxury conscious budget travelers, OYO seems to hold an upper hand over Booking.

However, that’s the long-term story. Ahead of its earnings, Booking looks rock solid, all set for another beat. Last week, rival Expedia’s (EXPE) shares jumped 8% after posting better-than-expected third-quarter earnings.  The company reported earnings of $3.65 per share versus $3.12 expected by analysts.


Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Viewing Highlight