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Booking (BKNG) Q2 Earnings Report Preview: What To Look For


Adam Hejl /
2022/08/02 4:15 am EDT

Online travel agency Booking Holdings (NASDAQ:BKNG) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Booking reported revenues of $2.69 billion, up 136% year on year, beating analyst revenue expectations by 6.59%. It was a stunning quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 198 million nights booked, up 100% year on year.

Is Booking buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Booking's revenue to grow 101% year on year to $4.34 billion, slowing down from the 242% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $17.59 per share.

Booking Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and three downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.7%.

Looking at Booking's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Roku delivered top-line growth of 18.4% year on year, missing analyst estimates by 5% and Twitter reported revenue decline of 1.15% year on year, missing analyst estimates by 11.9%. Roku traded down 26.9% on the results, and Twitter was down 3.88%. Read our full analysis of Roku's results here and Twitter's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.27% over the last month. Booking is up 6.3% during the same time, and is heading into the earnings with analyst price target of $2,548, compared to share price of $1,900.66.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.